Bottom Line:Recent policy shift(from pro-growth to preventing financial risks)and better global growth dynamics increase our confidence that China couldimprove capacity utilization,manage the debt cycle,and avoid a financial shock.We expect less disinflation and slower pace of debt buildup in 2017-2018,showing promising signs of a gradual rebalancing.
20170216-MORGAN_STANLEY-HINA_ECONOMICS_CHINA_ECONOMICS:ON_THE_WAY_OUT_OF_THE_WO.pdf
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