This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

How Will China Temper its Growth in 2013?

TAIPEI ( TheStreet) -- Expect turbulence.

That's the message I get from this year's National People's Congress. The political body that meets formally every March heard reports from their Communist Party bosses that the economy will grow just 7.5% this year. It's the envy of other countries but would mark a second straight year of slower growth after 7.8% in 2012.

As increases in China's total goods and services ease, investors have surely priced it into their positions by now. But the importance of the 2013 GDP forecast given in early March isn't the number. It's the narrative that Chinese leaders spun around that figure in reports and speeches linked to the March meetings.

New leaders, incidentally, are taking over the country this month. While the new crew obviously comes from the same Communist Party as the outgoing one and the Party is not about to sell out its long-standing economic ambitions, they could still shake things up to consolidate their personal reputations and gain respect from competing factions.

Don't be surprised about some bumps in global stock markets. China is a leading global indicator, so a jolt there easily ripples to foreign bourses. The bump won't last long if GDP growth really clocks in at 7.5% and the rest of the world averts market-throttling disasters. But certain sectors will slow along with China as a whole.

We heard from top state planner Zhang Ping's March 5 news conference that China was still able to weather global financial storms and that the country had already "increased the quality and efficiency of its economy" following faster buildup before 2012, according to the state-run China Daily newspaper.

But that's the sunny side. Zhang also said an unspecified list of remaining economic problems must be overcome. Premier Wen Jiabao got closer to the point, though he wasn't exactly bursting with specifics either.

China will "implement a prudent monetary policy," and check inflation by "carrying out macroeconomic policies, managing the supply of money and credit, and striving for basic equilibrium in aggregate supply and demand," China's official Xinhua News agency said, quoting the lame-duck premier.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.09 0.00%
FB $79.75 0.00%
GOOG $571.34 0.00%
TSLA $197.32 0.00%
YHOO $44.11 0.00%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs