介绍:
HSBC has cut its forecast for China's GDP growth this year to 7.1 percent, down from 7.3 percent.
It has also raised the expected interest rate from 25 basis points (bps) to 50 bps.
Meanwhile, the bank has cut sharply its forecast for China's export expansion this year to 4.2 percent from the previous 7.1 percent.
The adjustment comes as exports registered weaker-than-expected growth, a reflection of softer external demand and a stronger yuan.
HSBC chief China economist Qu Hongbin notes that continued economic weakness will prompt more aggressive easing measures in the second half of the year.
He expects the country to start municipal bond issuance to reduce the financing burden for longer-term infrastructure projects.
