"A senior government official caused a stir saying that the Chinese economy will face difficulties in achieving an average 6.5 percent growth over the next five years. The remark had an impact on the stock market with the Shanghai Composite Index plunging 5.3 percent on Monday [today].
"Li Wei, president of the State Council's Development Research Centre, said over the weekend that a growth rate of 6.5 percent is not high, but it will be very difficult to achieve this pace of growth".
"Most economists expect a much lower performance. But the market was surprised to hear an official of the State Council, which is led by the Premier, saying that the official target of 6.5 percent is “very difficult to achieve”.
"Questions are now being asked if China may water down its growth target. * * *