Report: Domestic economy remains stable in 2017

The growth trajectory of the Chinese economy remains stable in 2017, according to a report issued by the Institute for Advanced Research at the Shanghai University of Finance and Economics on July 5. The report pointed out that China should focus on improvements in two key areas—efficiency of resource allocation and innovation ability—to further boost the real economy. The operating efficiency of enterprises is expected to increase drastically this year relative to last year, and profits of industrial enterprises are projected to grow by more than 20 percent, said Huang Xiaodong, executive deputy director of the institute. However, he warned of the great impact of debt risks, especially increasing household debt. According to the report, the heavy burden of mortgages has weakened the social mobility of young families, middle-age families and elderly families whose children have bought houses with loans.