Consequently, Chinese markets have slowed down. The iShares China Large-Cap ETF (NYSEArca: FXI) dipped 0.1% over the past month and the SPDR S&P China ETF (NYSEArca: GXC) declined 0.7%. [China ETFs to Capture Long-Term Growth Opportunity]
If the government is less concerned about missing its 7.5% growth rate, Beijing will unlikely issue a broad interest-rate cutting scheme unless the economy rapidly deteriorated.
So, investors will likely see mini-measures to continue to targeted areas of the economy to shore up any weakness. The new regime will help keep the economy expanding, albeit at a slower pace, diminish its reliance on debt and provide more room for reforms to take hold.
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Max Chen contributed to this article.