The focus is on economic growth, at the expense of other worrying issues
including high debt, inefficient state-owned corporations and the accumulation of risks in the banking sector. The 2016 growth target is 6.5-7%, in line with previous statements coming out of Beijing but above our full-year forecast of 6.4% (see chart and last week's edition of Macro Highlights & Strategy
). We reiterate what we consider the government's misstep in announcing a quantified growth target, which leaves the authorities little leeway in the event of a growth shock.