The pace of migration of rural Chinese to cities, a dynamic hailed by Premier Li Keqiang as key to the nation’s development, is set to slow by a third in coming years, deepening economic-growth concerns.
Ken Peng, a Beijing-based economist at Citigroup Inc., forecast the yuan will rise 1.8 percent against the dollar this year after the central bank pledged to manage it against a basket of currencies with greater flexibility.
China eliminated the lower limit on lending rates offered by the nation’s financial institutions as economic growth slows and Premier Li Keqiang expands the role of markets in the world’s second-biggest economy.
China’s commerce minister said his nation’s economy is heading for a rebound this month following government measures to support growth, adding to signals of confidence among officials that the slowdown is ebbing.
Chinese manufacturing resumed expansion this month after shrinking the most in almost a year in July and output at European factories and services companies improved, a sign the global recovery is strengthening.
China’s new lending grew less than estimated in January as the weeklong Lunar New Year holiday left financial institutions with fewer working days to grant credit and the central bank refrained from cutting reserve requirements.