UPDATE 1-China economists see strong growth, no second stimulus

* China economy will grow 9.5 pct to 10 pct in 2010

* Forecast up from 8.5 pct growth predicted late last year

* No need for extra stimulus steps -economist
(Adds more economists’ views on growth)

BEIJING/SHANGHAI, July 22 (BestGrowthStock) – China is expected to
maintain strong growth in the rest of this year and there is no
need for a second stimulus, government economists said in
remarks published on Thursday.

The State Information Center, a think tank under the
National Development and Reform Commission, forecast economic
growth of 9.5 percent this year, which would be close to the
average for the past 30 years and reflect China’s reasonable
growth potential, the official China Securities Journal

Last November, the centre said it expected the Chinese
economy to grow 8.5 percent in 2010 and it repeated that
forecast in December. [ID:nSHA155265]

Separately, Wang Yiming, deputy head of the Academy of
Macroeconomic Research, also under the powerful economic
planner, told the official People’s Daily overseas edition that
he expected growth of 9.5-10 percent this year and warned
against upside risks of consumer inflation in the second half.

A Reuters poll of economists earlier this month produced a
median forecast of 10 percent (CNGDP1: ), but the survey was
conducted before the release of second quarter GDP and June
output data that came at the lower end of forecasts.

China’s growth moderated to 10.3 percent in the second
quarter from 11.9 percent in the first quarter as Beijing
steered monetary and fiscal policy back to normal after a
record credit surge to counter the global crisis.

Consumer inflation also eased to 2.9 percent in the year to
June, from 3.1 percent in the 12 months to May.

The slowdown has fuelled market expectations that Beijing
might ease off its tightening of policy or even announce new
stimulus measures.

However, Yi Xianrong, a prominent researcher with the
Chinese Academy of Social Sciences, a top government think tank
in Beijing, disagreed.

“The direction of China’s macro economic growth will not
reverse and the government should not introduce new policy to
stimulate the economy,” he wrote in an article published in the
Financial News, which is run by the central bank.

“It’s enough to maintain the stability and continuity of
policy introduced in the first half,” he said.

China’s Commerce Minister, Chen Deming, said the government
would maintain its consumption stimulus in the second half and
take an even longer view in its efforts to promote more
domestic consumption. [ID:nTOE66L007]

Yi said the tightening campaign in the first half,
including restrictions on multiple home purchases and loans for
new projects, had successfully reined in excessive housing
price rises and the rapid pace of loan growth after a record
lending of 9.6 trillion yuan last year.

If China is firm in its determination to curb speculation
in the real estate market, the country’s economic structure
will improve, laying a more solid foundation for long-term
growth, Yi said.

Stock Market

(Reporting by Langi Chiang in Beijing, Samuel Shen and Edmund
Klamann in Shanghai; Editing by Ken Wills and Tomasz Janowski)

UPDATE 1-China economists see strong growth, no second stimulus