China's Economy Is Likely to Grow ‘Well Above’ Target in 2019: Jefferies

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China’s economy will likely grow far faster than the official target of 6 to 6.5 percent this year due to stronger fiscal stimulus including tax cuts and faster debt sales, according to analysts at Jefferies Financial Group Inc.

The pace of growth will normalize in 2020, Jefferies analysts, including Laban Yu, wrote in a report dated Wednesday.

While significant monetary easing may be less likely from here, growth momentum could push the stock market to test early 2018 highs, the analysts said. China’s economy has already shown signs of recovery, with a strong reading of manufacturing and improving risk appetite.

©2019 Bloomberg L.P.