How key are China's SEO reforms to the economy?

Progress on SOE reform needs to be watched closely because it is an area where shifts in management could benefit the economy in a number of ways, according to Koon Chow, senior macro and FX strategist emerging markets fixed income team at Union Bancaire Privée

We look for Chinese economic growth to stabilise as the sum of countercyclical policy measures yield results. Our view on the economy is describable as 'caution with some optimism' as we recognise that China still needs to contend with the structural challenges facing the economy. However, the long-term outlook could become visibly brighter if domestic market reforms were to gain traction. The reforms have been piecemeal, but important steps were taken this year: domestic deposit rates can be freely set and there is a depositor insurance scheme. These are steps towards strengthening t...