OpinionLi Keqiang speech leak reflects sensitivity of growth slowdown
The premier has yet to show the public, the market or even his own officials what he's trying to do with the world's second-largest economy
If there was ever any doubt that the mainland would achieve economic growth of 7.5 per cent this year, it should be gone by now.
But not because Premier Li Keqiang has set 7 per cent as the bottom line. What matters, instead, is the way that information was released this week.
It all happened on Tuesday. That morning, several major securities houses did something extraordinary - they published a report based on an "unofficial" 7,500-word transcript of a speech by Li at a meeting with corporate heads and academics in Beijing on July 16.
According to the transcript, Li said he was committed to delivering the 7.5 per cent growth target this year while keeping inflation below 3.5 per cent. He said growth was trending down but had yet to reach the 7 per cent bottom line and therefore his focus would remain long-term, structural reform.
(In other words, if growth heads too close to 7 per cent, he will resort to short-term stimulus despite concern about the long-term damage it might cause.)
Titled "Dust should now settle on Premier Li's growth floor", Bank of America Merrill Lynch's report said: "The transcript of Premier Li's latest talk contains important information and will surely clarify much confusion on the streets."