China's lower growth target seen as a positive

China’s announcement that it has lowered its growth target down from 8% to 7.5% for the year ahead is a positive, according to Alan Thein, Co-Manager, Legal & General’s Multi-Manager fund range. While initial reaction to China's lower growth rates was seen as disappointing, Thein points out the markets may have misinterpreted the implications of this growth target revision. “The change should have come as no surprise given Premier Wen Jiabao noted that this change was bringing growth into line with the 7% target already enshrined in China's current Five-Year plan.” Thein makes the point ...