China economy needs further economic stimulus: Salomon

Salomon Smith Barney said it believes that the China economy needs further economic stimulus to smooth the negative impact of a V-shape growth. "Our view, an optimistic one versus consensus, expects gross domestic product to dip to 6.8 percent in the first quarter 2002 before rebounding above 7 percent from the second quarter," strategist Charles Cheung said. The strategist said Zhu Rongji's Guangdong visit this week could look at possible measures to boost the export sector. Also, unlike before, the authority may be reluctantly looking to stem the fall in the fragile A-share markets.

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