The Communist Party Political Bureau issued a statement praising the good start of the Chinese economy this year, calling for good supervision of financial and real estate markets to discover potential risks that may arise at any time.

While the Chinese government announced a week ago the growth of the second largest economy in the world by 6.4% during the first quarter of 2019 compared to the same quarter of last year and exceeded analysts' expectations slightly.

This came after a set of policies that encouraged banks to make more loans last year, as the economy was affected by the trade war between the United States and China.

On the other hand, economists at the Japanese investment bank, Nomura, expected a slowdown in the pace of monetary easing in China, and indicated that the slight change is caused by the rapid increase in debt and the existence of crazy savings in stock and real estate markets in major cities.

While Robin Sheng, chief economist of Morgan Stanley, revealed that the focus now will be on non-monetary measures, noting the greater reliance on financial mitigation after the massive incentives and discounts package announced by mid-March by the National People's Congress worth $ 298 billion

While both Larry Ho and Irene Wu of Macquarie Capital agreed that officials should act cautiously because they will need to keep some stimulus in the event of a deteriorating Chinese economy with massive debt levels that are a concern for economic policy makers.

It is noteworthy that Chinese stocks witnessed great jumps in 2019 after they recorded their worst performance in a decade in 2018. The Shanghai benchmark rose by 29% so far in 2019 after losing nearly 25% last year. >