Banks Take Estimates Down on China Growth; Slowdown Unstoppable

“China’s slowdown may deepen as policy makers unwind the excesses of a record credit boom while gradually stepping up stimulus, leaving 2012 growth at the weakest in 13 years, Pacific Investment Management Co. says.

“The economy is unlikely to bottom until the third quarter,” Ramin Toloui, Pimco’s global co-head of emerging markets portfolio management in Singapore, said in e-mailed comments yesterday. “Policy makers will progressively turn the dial toward more stimulus, but not in the aggressive manner of 2009,” restrained by the goal of tempering the credit-fueled property market, he said.”