SINGAPORE (Mar 18): The Chinese economy continues to be a concern to the rest of the world. The information we are getting paints a picture of economic frailty and financial fragility — and that policymakers’ efforts since last year to turn the economy around have not worked well. However, following a series of statements from leaders and senior officials at the National People’s Congress, it is now clear that China’s leaders are so worried about the state of the economy that they are pulling out all the stops to stimulate it. The new measures strike us as well-targeted and likely to be effective. Indeed, we believe that China could deliver a powerful upside surprise in economic growth in the next few months, with substantial spillovers to Southeast Asian economies.

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