Citi with the note.
China is on the brink of a self-fulling “confidence trap” as the initial reopening impulse starts to fade. The policy mode has shifted from wait-and-see to proactive easing, as confirmed by the June cut.
We continue to expect more stimulus measures ahead to strike a steady recovery of confidence. We cut our growth forecast for 2023E to 5.5%YoY from 6.1%YoY.
