Mary Nicola of PineBridge Investments said rising prices and scorching heat in China, which has led to shrinking electricity in some parts of the country, will weigh on economic growth. “We thought, especially after the lockdown in Shanghai, that the worst would be behind us,” he told CNBC’s “Street Signs Asia” on Tuesday. “But potentially … with the inflation concerns, with the heat wave concerns flowing, it could mean that policymakers will have to act a little more decisively and increase some of the stimulus,” he said. Policymakers will have to act a little more responsively, more decisively in terms of something a little more than what we’ve seen so far, to alleviate some of this growth pressure. Mary Nicola Portfolio Manager, PineBridge Investments So far, the government has reduced interest rates and taken targeted measures to support the real estate sector. “These are all positives, but in our view, there needs to be something… more aggressive [the] market to feel a little more relieved that growth will pick up in China,” said Nicola. He said China’s growth has not been as strong as expected despite steps taken by authorities and more needs to be done. “The bottom line here is, as growth slows, policymakers are going to have to act a little more responsively, more decisively in terms of a little bit more than what we’ve seen so far, to alleviate some of that growth pressure. ,” he said.
