Foreign-funded firms upbeat on China's economy

BEIJING -- Foreign-funded institutions are optimistic about China's economic development arguing the country will face less risk of a severe slowdown, the China Securities Journal reported Friday.

JP Morgan Chase & Co said three factors will support China's future economic recovery. These include robust investment in infrastructure and stable private input in the real estate sector, improving global economic circumstances in the second half of 2013, and the lagged effect of credit growth in the last quarter of 2012 and the first three months of this year.

JP Morgan maintained the forecast of China's yearly economic growth as 7.6 percent in 2013, with a steady and mild recovery in the next several quarters, according to the article.

Credit rating agency Moody's said the worst situation has already passed as July statistics showed that China's economy was returning to normal status, but recovery will be at a slow pace.

Goldman Sachs Group said that the Chinese central government is striving to stabilize the market and sustain economic growth before the approaching third plenary session of the 18th CPC Central Committee, according to the report.

However, BOC International Limited said growth stimulated by real estate, credit expansion and an investment rebound will not be sustained. The prudent monetary policy and slower growth in social financing and M2, the broad measure of money supply, will keep economic growth at a slow pace, it added.