STOCK MARKET WATCH -- Wednesday, 29 October 2014

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16. WORLD BANK: CHINA NEEDS REFORM, NOT GROWTH TARGETS

http://hosted.ap.org/dynamic/stories/A/AS_CHINA_WORLD_BANK?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-10-29-05-02-44

BEIJING (AP) -- China's growth could decline to close to 7 percent next year but Beijing should focus on overhauling its economy instead of trying to stick to official growth targets, the World Bank said Wednesday.

To avoid a sharper slowdown, Beijing needs to promote competition and efficiency by reforming its labor and real estate markets and its state-run financial system, the Washington-based lender said in a report.

Trying to stick to short-term official targets might set that back by prompting officials to pump credit into the economy and disrupt the development of markets, said the report's chief author, economist Karlis Smits.

"The policy focus should be on reforms rather than on meeting specific growth targets," said Smits at a news conference.