China might not reach 7% growth

Policymakers this year reduced China's growth target to 7% compared to 7.5% last year. China grew at 7.4% rate per annum. Other economic dockets pose considerable doubt over China's ability to grow at the targeted pace and raise further concern for a hard landing of the economy.

• In February, China's house price index fell by -5.7%. This is a sixth consecutive decline. China's developers are feeling the heat of a bust after years of boom. Kaisa group, property developer is negotiating a debt restructure threatening the bondholders just to pay 2.4 cents on the dollar.
  
  
• Fixed asset investment growth, that is vital for Chinese economy fell from 25% in 2012 to 13.9% as of now. Slowdown is expected further.
  
  
• China is world largest exporter however industrial production slowed to 6.8% as of now from 14% in 2012.
  
  
• Retail sales dropped to 10.7% in 2015 from 18% in 2012.
  
  
• China's rail freight growth has been negative since 2014 and in 2015 deceleration reached -15%.
  
  
• Fall in commodity prices are much steeper than cut in GDP target.
  
  
• Revenue of gaming and gambling in Macau and jewelry business in Hong Kong which depends on demand from China is slowing much faster.

 Various data point indicate that underlying slowdown is much faster than the GDP estimate and may finally lead to a hard landing of the economy.