What they say

The macroeconomic data out of China was better than expected in 2016, due in large part to an expansionary fiscal policy, some rebound in the housing market and, true to form, an ample supply of credit. As a result, the weakness in the secondary sector was surprisingly contained. Credit losses were avoided; impairments have only gradually manifested in financial institutions' balance sheets. Deflationary pressures subsided as supply-side reforms gave life to producer prices, helping to support profit margins and reducing the debt burden.

Jeremy Stevens, China economist for the Standard Bank Group

We continue to expect a slowdown in property activity to drag GDP growth down to about 6.4 percent in 2017, even though Q1 property investment may remain relatively robust. Macro policies will likely strive to strike a fine balance between supporting growth and controlling financial risk, with credit growth slowing only modestly while money market rates will likely stay elevated.