UOB KayHian Offers Shocking Opinion On Chinese Growth ...

I am back, and UOB analysts, that I deemed to be the "almost members" of Chinese Communist Party offer "shocking opinion" on the Chinese growth story:

For the longer term, we believe the government needs to grow the economy by a more healthy way rather than based on the current mode, which relies too much on investment. If there is no recovery in consumption and exports, the fast expansion in investment could cause excess capacity to worsen and would therefore be unsustainable. Also, based on contributions by consumption and investment to GDP growth in 1H09, we can see that the investment boom has little effect on consumption as it was mainly government-driven. The government can boost both investment and consumption by deregulating private investment, allowing investment in sectors such as financial, telecoms, railway and aviation, which are
monopolised by state-owned firms. By this way, social capital can be raised and personal income be lifted, at the same time. The government has indicated that in the next stage, its priority is to focus more on stimulating domestic demand. Thus, it is studying measures to deregulate private investment.

Who cares about the long term?