Shado Baker
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Shado Baker in Asian Markets,

Goldman Sachs isn't worried about China

The world is worried about China's economy. Mark Schwartz, Goldman Sachs' man in Beijing, not so much.

Yes, China's stock market has tumbled 40% since June. And yes, the country has hit a rough patch. "A few things have gone wrong this summer," said Schwartz.


But he also thinks the doomsday scenarios are way off the mark.

"I think the market reaction globally is overdone," said Schwartz, who is chairman of Goldman Sachs in Asia-Pacific. "I think China is going through a very normal transition, from a state-controlled, state-dominated system, to a more market-oriented system."

Experts have known for a long time that China's growth would slow. It had to weaken, in fact, as Beijing made reforms designed to shift the country away from relying on building roads, railways and housing to generate growth, to an economy powered by consumer spending.

That's happening now. Beijing's growth target for the year is 7% -- a goal it said it met in the first six months. Seven percent is a far cry from the heady days when China's economy was expanding by 10% a year on a regular basis. But it's still strong enough to create new jobs to keep employment steady.

http://money.cnn.com/2015/09/06/news/economy/china-goldman-s...