Are investors misreading the
outlook for China?

Sep 19, 2016 / by Kate Moore

Sep 16, 2016

Kate Moore, BlackRock’s Chief Equity Strategist, explains the impact of Chinese economic growth on emerging markets and why the long-predicted slowdown may be milder than it seems.

  • View transcript

    Everyone has been really concerned about a slowdown in Chinese growth or even a hard landing in the Chinese economy. I think they’re missing the point here. In fact, we have a huge amount of growth coming out of China. We need to focus not just on the growth rate, but on the dollars of GDP created. The Chinese economy is four times the size it was at the beginning of this century, so we don’t need 10 percent growth to create all of these dollars of GDP in the global economy.

    I think the second thing to focus on is the political will. We have a government that is incredibly focused on reforming and changing the nature of the market and the economy to meet the future needs of the population. While this transition is going to be slow, from an industrial and manufacturing-oriented economy, to a service side, there is some reason to believe that will be accelerated going into a big political transition in the third quarter of 2017.

Kate Moore
Chief Equity Strategist
Kate Moore, Managing Director, is Chief Equity Strategist for BlackRock and is a member of the BlackRock Investment Institute.