Economy slows to improve endurance, quality

As the Financial Times reported, China's slower growth is for real, and most of it has occurred as a result of government policies aimed at shifting the focus to better quality growth and not just growth for the sake of it.

Better quality growth calls for high quality decision making.

Striving to hit the right pitch of development, the government is unveiling a string of reform initiatives that are much more detailed, specific and well-targeted than before to stimulate domestic demand, improve economic efficiency and people's livelihoods and promote urbanization.

The Associated Press said in a recent report that China's government had ordered more than 1,400 companies to cut excess capacity, despite the slowing economic growth rate. The affected industries include steel, cement, copper and glass.

It said the recent move affirmed Beijing's determination to push ahead with a painful economic restructuring.

The Financial Times said the Chinese government had unveiled a package of measures, dubbed a "mini-stimulus" by economists, to boost growth by eliminating taxes on small businesses, reducing costs for exporters and lining up funds for the construction of railways.

The measures aim to reduce the power of the government and give companies more space to operate, it said.

And positive changes have already occurred in some areas of the economy, thanks to the stimulus package.

The added-value of the country's tertiary industry increased 8.3 percent year on year in the first half of this year.

The employment sub-index in HSBC Services' PMI remained at a relatively high level of 52.6 in June.

Meanwhile, the country's retail sales increased 12.7 percent year on year in the first half, according to the latest data released by the National Bureau of Statistics.

Against such a backdrop, some global investment agencies are beginning to rethink China's economic slowdown to avoid overreaction and adjust their investment strategies to the new pace of China's economic growth.

As Reuters said in an analysis, some investors have realized slower growth is a necessary precondition for a clean-up of China's financial system and the state's financial resources are considerable and can deal with the problem. Many of them believed it is time to jump back into the oversold Chinese market.