China on brink of bull market as growth accelerates

Bank of America Merrill Lynch’s China economist Ting Lu said he expected annual GDP growth to peak at 8.3% in the first half of 2013, before slowing again to 8% over the second.

‘Pro-growth policies will be extended into 2013, and big-bang stimulus will be avoided unless there is another global financial crisis,’ said Lu

‘Within the year, policy will likely be marginally tightened towards 2H on concerns of rising inflation and home prices, investment overheating and financial system risks. We expect no rate changes in 2013, and the People’s Bank of China will aim to deliver a stable interbank rate.’