China will grow at 8.5%, no monetary easing this year: HSBC

It has been a mixed bag of data from China. With a lower GDP growth target for the year at 7.5% and slowing exports, is China headed for a hard landing? CNBC-TV18 asked Arjuna Mahendran, managing director and head of investments strategy (Asia) at HSBC Private Bank for his remarks. Check out his comments.

Q: What do you make of this deteriorating data and the lower GDP growth target?

A: Essentially, the Chinese have been facing this problem of heightened inflationary pressure over the last year and a half. They have been trying unsuccessfully to combat this until about the beginning of this year 2012 when the cumulative effects of monetary tightening, a stronger Renminbi vis-