Chinese economy likely to fare well this year also

BEIJING, Jan 22 (Xinhua): China's economic performance beat market expectations in 2017, but will the bullish momentum continue into the new year?

A moderation in gross domestic product (GDP) growth is the popular view among global investors given a high comparison base, while a more balanced and sustainable economy is expected to take shape faster. China's economy totaled 82.7 trillion yuan (about 13 trillion U.S. dollars) in volume in 2017, expanding 6.9 per cent as it picked up pace for the first time in seven years.

Stronger-than-expected growth data may indicate a further tightening of macro-prudential policy, but that does not change Japanese securities trader Nomura's economic view for China this year. It has raised its 2018 GDP growth forecast by 0.1 percentage point to 6.5 per cent, with a gradual growth slowdown in coming quarters.

Global investment banks JP Morgan and UBS expect China's economy to expand about 6.7 per cent and 6.4 per cent this year respectively. The property sector remains one of the major uncertainties facing China's economic growth in 2018.

No collapse or major loosening of property market management is in sight this year, but government policies including supporting rental housing and a faster-than-expected legislative progress for property tax might complicate market sentiment, according to Zhu Haibin, JP Morgan chief China economist. UBS China economist Wang Tao estimated that property sales might lose momentum in 2018, while property investment and construction growth stay robust or soften only modestly until late this year.

Meanwhile, the central parity rate of the Chinese currency renminbi, or the yuan, advanced Monday to its highest level since Dec 08, 2015.

The central parity rate of the yuan, strengthened 57 basis points to 6.4112 against the U.S. dollar Monday, according to the China Foreign Exchange Trade System.

The rise came after the yuan strengthened 232 basis points to 6.4169 against the U.S. dollar Friday.

The U.S. dollar lost against its peers Monday as a U.S. government shutdown dented sentiment.

"The yuan's robust performance was the result of a weaker dollar, sound economic fundamentals, improved regulation of capital flows and increased global use of the currency," said Liu Jian, a researcher of the Bank of Communications.

China's economy totaled 82.7 trillion yuan (about 13 trillion U.S. dollars) in volume in 2017, expanding 6.9 per cent as it picked up the pace for the first time in seven years.