China’s economy may slow to 4 percent to 5 percent growth this year, according to Patrick Chovanec, an associate professor at Tsinghua University.
“I think we are going to see a deepening of this slowdown; this slowdown is driven by the accumulation of bad debt that’s dragging down investment,” he said on Bloomberg Television in Hong Kong. “We’re looking at 4 to 5 percent growth right now despite the official numbers.”
Chovanec, an adviser and former vice president of the Hong Kong venture capital firm Asia Mezzanine Capital Group, said Chinese corporate earnings growth is slumping.
“Look at all the profit warnings that are coming out,” he said. “A lot of companies are having difficulty growing in this Chinese economy.”
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