China's economic recovery below expectations: JP Morgan

BEIJING -- The Chinese economy this year will experience a tempered growth weaker than expected, predicted JP Morgan Chief China Economist Zhu Haibin on Thursday.

Speaking during a media briefing, he said that JP Morgan has revised down its GDP forecast for China in 2013 to 7.6 percent from the previous forecast of 8.2 percent amid weak economic data.

"The April data suggests that domestic demand remains on the weak side, and by extension has also caused a softening in the services sector," said Zhu.

Despite strong growth in real estate and railway investment, investment in the manufacturing sector continued to slow and the recovery in industrial production was weaker than expected, according to the senior economist.

Zhu suggested that the Chinese government continue reducing overcapacity, open more sectors for private investment, encourage research and innovation, and alleviate the burden of companies' taxation to promote recovery.

As for China's property market, Zhu said it is less likely that the central government will release further tightening policies given faltering economic recovery and varied regional conditions.

He said it is very likely that local governments will work out their own property policies with adjustment in limited property sales and mortgage rates in cities with rising house prices.