Stock Market News : Morgan Revised Down China GDP Forecast

Stock Market News :

Morgan Stanley (MS) revised down China GDP forecast from 7.5% to 5.5% in 2009 :

MS says Chinese economy was hit hard in 4Q08 by massive de-stocking and a serious disruption in trade finance. The economy landed hard in the quarter, with industrial production and CPI inflation likely having plunged to 6%YoY and 2%YoY from 16%YoY and 8%YoY, respectively, in 2Q08. We estimate China’sGDP growth may have registered negative QoQ growth of -1.7% in 4Q08 after a flat quarter in 3Q08 (on a seasonally adjusted, annualized basis). MS is downgrading GDP growth forecast for China from 7.5% to 5.5% for 2009.