The news and in brief reasoning is here from earlier:

And other analysts are also cutting:

More from Goldman Sachs, citing as reasoning for their downgraded forecast:

  • upcoming policy easing is unlikely to exceed those implemented in previous downturns
  • Property and infrastructure stimulus will probably be “targeted and moderate” (GS cites shrinking population, elevated debt levels and President Xi calling for curbing property speculation)
  • government may accelerate the issuance of local government special bonds, which are mainly used for infrastructure construction
  • may also continue to ease property policies including lowering down-payment requirements, cutting mortgage interest rates and removing purchase restrictions in top-tier cities
  • supporting industries considered as new growth drivers of the economy, such as high-end manufacturing and new energy vehicles ... he impact on GDP growth is likely limited because these plans have already been in place for years
goldman sachs yellow