The economy's steep uphill climb

Effective capital management tools will buoy tempered growth in China's new phase

Last year the Chinese economy entered a phase that President Xi Jinping dubbed the new normal, which encompasses three challenges: a tempering of economic growth, structural adjustments and the re-examining of problems left by the 4 trillion yuan stimulus package of 2008-09.

To be clear, China's economic rate is going to drop from 10 percent - the norm of previous decades - to about 6 to 7 percent over the next 10 years. The country's growth model is switching from an investment and export-oriented one to a more efficient model driven by both domestic consumption and investment. The stimulus package initiated by the central government in response to the financial crisis of 2008 has had a lot of side effects, including overcapacity in manufacturing industry, soaring local debts and real estate bubbles in several cities. Each problem is monumental. Tackling them altogether is the ultimate challenge.