SHOWS: HONG KONG, CHINA (JANUARY 20, 2014) (REUTERS - ACCESS ALL)

HAIBIN ZHU, CHIEF CHINA ECONOMIST AND HEAD OF GREATER CHINA ECONOMIC RESEARCH, JPMORGAN

1. (QUESTION GRAPHIC)

'China's Q4 GDP number came out at 7.7%. What is your 2014 economic outlook for China? And what are the key risks the economy will face?'

2. HAIBIN ZHU SAYING:

'Yes, 2013, the final number is 7.7, that's above the government's target of 7.5. I think the good side is that the market worry of this hard landing scenario at certain time of last year before the year, middle of last year, that has disappeared. So if you look ahead to 2014, now we of course, the focus is talking about the structural reform. So the good news is that now if you talk about a macro-background, we are in the comforting background that you can push for reform because the growth momentum is quite stable. But cautious side is that, if you compare third quarter to the fourth quarter, I would say there is some slowdown in the fourth quarter. So in that sense, I would say the concern is if you particularly focus on the structural reform, the near term impact on growth may be negative. So in that sense, how to combine these two policy objectives -- reform and growth -- that's still a tough question for the policy makers.'

3. (QUESTION GRAPHIC)

'The government has said it will tolerate slower growth in order to rebalance the economy towards domestic consumption. What will be the main consequences of this change?'

4. HAIBIN ZHU SAYING:

'Yes this marked a dimensional comparison. If you compare China versus few years ago talking about export-driven growth model, actually this model has come to an end. Last four, five years after global financial crisis, China had relied very little on their net exports. It has been mainly domestic-driven. The second dimension is that if you compare between investment and consumption, China rely too much on investment, and consumption has been relatively weak compared to investment. So that's the main imbalance we are talking about and the transformation of growth model. But the dilemma here is that if you crackdown on investment, then China is not able to maintain the higher growth number they have in mind. So in the next few years, I will say you still need to balance between consumption and investment. For this year, I believe the consumption will be quite stable and the key determined for growth outlook is still investment. So the biggest challenge for investment is how to correct the phenomenon that investment has been too high. But the more important is investment efficiency had been low. I think that's the biggest problem for the Chinese economy.'

5. (QUESTION GRAPHIC)

'What would you say are the most important policies the government should pursue to put the economy on the right path?'

6. HAIBIN ZHU SAYING:

'As we said, the biggest challenge is how to balance reform and growth, because these two could be conflicting. And if you look at the agenda for economic reform for this year, I would say, one good thing, good reform could happen is the administrative reform the government has been highlighting. And that means removing these administrative approval items, easing the restrictions for the private sector investment and also opening access in a few sectors. Say the top priority -- the services sector, financial services and also the telecom. So these are a few examples. If you truly open access and liberalize the market, then that could put stimulus on these private sector investments, that could provide, could combine the two seemingly conflicting objectives.'