EFTA Document EFTA01459004

Deutsche Bank Markets Research Asia China Economics Foreign Exchange Rates Update China Monthly: Rising challenges will trigger more policy easing in 2016 • Economic outlook: China's economy had a tough year in 2015. 2016 will likely be even more challenging. The current round of policy easing may help to boost growth in O4 2015 and O1 2016, but also exacerbate overcapacity and raise leverage, both damaging in the longer term. In mid 2016 the government may face a policy dilemma a