Treasury Secretary Dr Martin Parkinson delivered a highly informative speech to a Goldman Sachs conference yesterday, in which he noted:

…Treasury has often been portrayed as eternally optimistic on the Chinese economy – in fact, our analysis is far more nuanced than that.

In the short-term, while there are certainly risks – not least the vulnerable international outlook – we believe that the outlook for China is strong and that a “hard landing” is unlikely. Domestic demand continues to grow strongly and China has much policy space should there be a major slowdown in global growth.