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Published on Tuesday, March 8, 2016 | Updated on Wednesday, March 9, 2016

China | NPC reaction: Targets point towards new focus on growth and financial stability

The NPC started on March 5 and will conclude on March 16. The authorities seem adamant about maintaining high growth rates, and set the target for 2016 at 6.5-7.0%. Consequently, stimulus measures will be revved up via fiscal and monetary policy channels. This could aggravate China’s looming overcapacity concerns and further push up corporate leverage.