Head of China Economics Research, Wang Tao, said in an interview at UBS that the Chinese economy remains weak. Though the sitiuation remains fragile, the government has been working on China's economic stability by changing their growth structure as discussed on September 10.

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As emphasized by Premier Li Keqiang, the China's target growth rate should be 7.5% or higher. However, their lack of strength in domestic demand remains low due to declining imports and depleting money supply.

According to the National Bureau of Statistics, China rose 2% from last year's index. As of September 10, the consumer price index only reached 2.2% compared with last month's 2.3%. This was even more than the projected drop of 1.1%.

Additionally, the producer price index was also depleted and remained at this rate, which has been its longest streak. The Statistics Bureau claims that that the industrial demand is not on its affirmative stand. Some industrial sectors remain under pressure merely because of overcapacity. The drop in August PPI resulted in price inflation in major goods, such as oil, steel, cement, and most especially coal.

Shen Jianquang, the Chief Asia economist stated that the deflationary environment is in a serious situation. That is why the probability of targetting mortgages is more likely the focus as the government created a new growth model.

Though some consumer prices were maintained, not all are subdued. Prices for household services increased to 8.8% and educational expenses went up to 5.8% compared with last year's table. Even the supply of major goods like bananas, apples and eggs ranged from 23% to 40%--way higher than the previous year.

As per Bill Adams, Senior Economist for PNC Financial Services Group, labor-concentrared services have been striding at a faster pace as assimilated to other consumer sectors.

Hence, what China needs to rely on is a strong reform since it strengthens the economic market. Improving these figures is obviously strenous, but highly attainable. The government's amendment of growth would surely secure their resources. 

TagsShen Jianguang, Li Keqiang, Bill Adams