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China | Recovery pace is moderating in Q2

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Economic activity indicators moderated in April as the authorities fine-tuned the pace of policy stimulus on concerns of rising risks associated with credit binge. Our model-based forecast for Q2 GDP is 6.4%, which is line with our full-year 6.4% GDP forecast. On the policy front, we anticipate the authorities to beef up easing efforts again in the second half of 2016.

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