China growth target likely to be cut but stocks may have seen the worst

Bloomberg reports that China is likely to further cut its target for economic growth next year.

Government leaders will announce a growth objective between 6.5 percent to 7 percent for 2016, according to eight of 15 economists in a Bloomberg News survey conducted Sept. 17-22. Four said they expect a 6.5 percent goal.

Still, Bloomberg reports that HSBC thinks further losses by Chinese stocks are limited after leveraged traders cut $218 billion of positions.

“We’ve seen the worst" for mainland stocks, said Steven Sun, Hong Kong-based head of China equity strategy at HSBC, who has a neutral position on yuan denominated shares. “The whole deleveraging process is largely over."