Under the triple pressure of demand contraction, supply disruption and weakening expectations, along with the global impact of the Russia and Ukraine conflict and the US Federal Reserve’s interest rate hike, China set this year’s GDP growth target at around 5.5 percent, according to the annual Government Work Report released in March. Analysts believe the goal should be achieved with policies to prioritize the stable growth of investment, especially investments in property and infrastructure. Over the past few years, China has lowered its leverage ratio by defusing the risks of shadow banking, curbing a considerable amount of hidden local government debt, squeezing the real-estate bubble and containing speculative investment in real estate. Analysts think this makes it possible for China to further relax its fiscal and monetary policies.
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