(Yicai) May 23 -- China’s economy may expand by 5.2 percent this year, thanks to the government’s latest policy support measures, according to Zhu Haibin, chief China economist at J.P. Morgan.

Although the country’s economic data for April was weaker than expected, that is expected to improve in the coming months, Zhu said in an interview with Yicai on the eve of the US investment bank’s 20th Global China Summit being held in Shanghai today and tomorrow.

China’s gross domestic product rose 5.3 percent in the first quarter, supported by industrial production, the consumption of services, and investment in manufacturing, official data showed. Earlier this year, the government set an annual growth target of around 5 percent.

Other key indicators, such as industrial added value and exports, also stood out in the first three months of the year, Zhu said. Exports did particularly well, soaring more than 10 percent by volume. Manufacturing investment also did well with policy support, but the property market remained weak, leading to further policy loosening.

But the latest housing market measures need further observation, Zhu pointed out. Even though they will help to boost confidence, caution needs to be exercised around any recovery in demand, he said.

With the economic recovery gaining momentum amid ongoing policy support, China-based chief economists polled by Yicai remain optimistic about the country’s economic prospects, despite a modest decline in confidence this month.

The Yicai Chief Economists Confidence Index edged down to 50.52 in May from 50.86 in April, ending two months of gains but remaining above the key 50 level, it was revealed on May 8.

J.P. Morgan has been bullish on the Chinese stock market since October, but continued fund inflows will hinge on whether performance growth steadies, said Liu Mingdi, the New York-based bank’s chief equity strategist for Asia and China.

At present, only a few foreign funds are investing in mainland stocks, Liu said, adding that foreign investors may increase their allocations if performance improves and asset prices stabilize. Meanwhile, equities account for 20.5 percent of mainland public funds, down from 28 percent in the fourth quarter of 2021. allowing headroom for an increase in the future, he said.

J.P. Morgan’s Global China Summit anticipates over 2,500 participants from 1,300 companies across 33 countries and regions.

Editor: Kim Taylor