China International Capital Corporation Limited (CICC), one of the leading Chinese investment banks, has announced a cut in its forecast for China's GDP growth for the current year from 7.9 percent to 7.7 percent, compared to GDP growth of 7.8 percent recorded last year.
CICC has indicated in its report that the main data for Chinese economic activity in April were lower than previous predictions, adding that there is unlikely to be a significant rebound in China's GDP increase rate in the remaining quarters of the current year.
The CICC report also stated that structural imbalances in the Chinese economy, especially the bubble in the real estate sector and the financing difficulties faced by private sector companies, constitute major factors inhibiting Chinese economic development.
CICC has also cut its forecast for China's GDP growth in the second quarter this year from 7.9 percent to 7.7 percent.