Chinese GDP (gross domestic product) growth could balloon to 8 percent next year and prompt a significant spike in domestic stocks, according to one economist's "outrageous predictions" hotlist for 2017.
This optimistic view is just one of ten outlandish scenarios posited by Steen Jakobsen at Saxo Bank. Although not a house view by the Danish bank, the list is an annual exercise which seeks to throw some outlier possibilities into the regular mix of year ahead predictions rolled out by financial pundits at this time of year.
Jakobsen says China could forge an enormous fiscal and monetary stimulus which opens up capital markets, prompts buoyant service sector growth and successfully delivers its longed-for transition to a consumption-led economy. At this point, "euphoria" would help the Shanghai composite index shoot up to 5,000 points - around a 55 percent premium to its level on Wednesday.
Speaking to CNBC on Wednesday, Jakobsen, the chief economist at Saxo Bank, said the future impact of China should not be underestimated.
"The total spending by the Chinese consumer in the next fifteen years will be more than the total size of spending in Europe," he claimed.
Turning specifically to the opportunities presented in financial services in the country and wider Asia-Pacific region, Jakoben added, "As someone who is on the ground in Shanghai as a bank, we have seen more ability to do business over the last 24 months than we've done in the last 24 years. hings are changing on the ground."