According to a research note published by BBVA on August 16 2016, China's slowdown is set to continue in 2016 and 2017.
In the research note, the analyst wrote, ""We maintain our 2016 full-year projection at 6.4% and 2017 projection at 5.8%, with the balanced risks going forward. (Figure 3.1) Growth slowdown in 2016-2017 will be led by the deceleration of fixed asset investment (FAI), especially the sharp decline in private FAI. Meanwhile, the long-term growth outlook looks dimmer due to the slow progress of structural reforms in some key areas (in particular SOE reforms). Regarding inflation forecasting, we maintain this year’s CPI projection at 2.3% and next year’s projection at 2.7%."
The research note also said that their will be a sharp drop of private investments. "Despite the authorities’ beefed-up efforts of policy easing, China’s fixed asset investment (FAI) has significantly decelerated in the recent months, in particular for FAI by private firms. Such a trend has raised people’s concerns widely since FAI by private firms accounts for the lion’s share of aggregate investment, 64% as of 2015. We think that the significant drop in private FAI growth mirrors private firms’ adjustment of their balance sheets. Thus, decelerating FAI by private firms is likely to usher in China’s deleveraging, which is imperative for the debt-laden corporate sector to restore its financial health.