China GDP growth likely to be at 6.0% in 2016

Headwinds to Chinese economic outlook remain, for example, the rebound in industrial production growth can be transitory as the industry capacity glut continues and the effect of car tax cut will wane out slowly.

The subdued PPI deflation persists at 5.9% for 4 straight months to depress inventory restocking by manufacturers among tepid domestic and external demand.

The investment growth is likely to moderate in coming months driven by real estate investment slowdown. Developers have focused on inventory run downs and earnings growth, despite solid property sales.

"We maintain our 2016 GDP growth forecast of 6.0% amid continued headwinds from capacity unwinding and destocking, with weaker growth in Q4 2015 expected (2015: 6.8%) ", estimates Barclays.