HSBC chief executive Stuart Gulliver says China's economy is unlikely to suffer a "hard landing" despite slowdown fears

 
Jessica Morris
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China's currency moves had spooked investors (Source: Getty)

HSBC chief executive Stuart Gulliver has said China is unlikely to have a "hard landing", despite mounting concern over the strength of its economy.

"The fears for China's economy are overplayed. I do not believe China will have a hard landing," Gulliver said in a speech today.

"The last few months have obviously been difficult... (But) the fluctuations and stock market volatility have little or no bearing on the long-term trends around China."

The boss of the UK's biggest bank also said that recent market volatility was an "inevitable" consequence of China's transition away from export-led growth, towards more sustainable domestic, consumption-led growth.

Read more: China's economic slowdown will hit London's property market hard

China's decision to allow its currency to move more freely, as well as a stream of disappointing economic data, has rippled through financial markets. These developments fed into fears that the emerging markets and China are slowing at a greater pace than had previously been thought.

"China is part of the way along the path of reform. It is attempting a transition that is far from straightforward," Gulliver added.

"It is moving from an economy built on the power of the state to one increasingly supported by the private sector, and it is doing this while unwinding and reducing reliance on local government debt and shadow banking and simultaneously developing its capital markets."

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