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Why I am starting to worry about China: Jakobsen
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Saxo Bank’s chief economist Steen Jakobsen has long held the view that China would see a long landing rather than a hard landing as the world’s second-largest economy slows. But Beijing’s efforts to boost growth by allowing a massive expansion of credit is starting to cause concern, Jakobsen now says.
He believes that the short-term stimulus introduced in China will temporarily boost indicators and may prompt the markets to believe that all is well in the Middle Kingdom. But, he adds, investors should to brace themselves for a real slowdown towards the end of this year when the current stimulus starts running out of steam.