Asia-Pacific News

China Can Achieve 10.5% Growth in 2010: Economist

The Chinese economy will be able to achieve 10.5 percent growth in 2010, said Tomo Kinoshita, deputy head of economics, non-Japan Asia at Nomura International.

Speaking on CNBC's Asia Squawk box, Kinoshita said this bullish growth would be investment-driven.

China Economy Expected to Grow 10.5% in 2010

"What we are seeing is that it's not only the fiscal stimulus policy but also the investment in the areas of property (that) is really helping the Chinese economy."

He said investment projects have increased substantially in China this year and would help create investment demand as long as they were funded.

The financing of the projects would be supported by China's loose monetary policy, he added.

Kinoshita did warn though that overcapacity in the steel or cement sector needed to be cooled down and he did not see the export sector performing well next year.