Policymakers in China must be more “aggressive” in supporting the economy before the market can believe growth will improve, according to a portfolio manager.
Mary Nicola of PineBridge Investments said soaring prices and scorching heat in China, leading to division of power in some parts of the countrywill affect economic growth.
“We think, especially after the Shanghai lockdown, that the worst will be behind us,” she told CNBC. “Asian street signs” on Tuesday.
“But potentially…with inflation concerns, with heatwave concerns rolling in, that could mean policymakers will have to act a little more decisively. and increased some stimulation,” she said.
Policymakers will have to act more sensitively, more decisively on something a little more than we’ve seen so far, to ease some of those growth pressures.
Mary Nicola
Portfolio Manager, PineBridge Investments
So far, the government has interest rate cut and take Targeted steps to support the real estate sector.
“It’s all positive, but from our point of view, there needs to be something… more positive to .” [the] Nicola said.
She said China’s growth has not been as strong as expected although authorities have taken steps and more needs to be done.
“The important thing here is that, as growth slows, policymakers will have to act a little more sensitively, a little more decisively than we’ve seen so far, to reduce some of that growth pressure,” she said.
