Iron ore futures fall as China fudges growth target

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Speaking at the Bo’ao Forum today, Chinese Premier Li Keqiang said in the opening speech that the government would not be roling out stimulus and that it was:

…more concerned about the sustainable development of the Chinese economy.

“The target GDP growth rate for the Chinese economy is about 7.5 per cent. Because we said it was ‘about’ 7.5 per cent, it means there is room for fluctuation,” Premier Li told a gathering of international political and business elites including the Australian delegation.

“It does not matter whether it grows faster than 7.5 per cent, or slower than that. As long as we can guarantee sufficient employment and there is no big fluctuation, we are operating in the reasonable zone.”

Both rebar and Dalian futures are down 1% today.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.