** China faces daunting challenges in 2018. Yet, Guo Shuqing running the PBOC after Zhou Xiaochuan’s retirement would be reason for optimism ![image]

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• China’s Zhou Xiaochuan sure knows how to make an exit.

• For months now, investors and corporate chieftains have been biting their nails about the retirement of Beijing’s central-bank governor. Zhou, who just turned 70, appears to have engineered a path for Guo Shuqing, a reform-minded, former People’s Bank of China (PBOC) deputy, to replace him. That’s comforting news, allaying fears President Xi Jinping might install a yes-man in the pivotal job. Tapping Guo is a clear sign Xi means to accelerate financial upgrades.

That’s a short-term negative for Asia, but a huge positive in the medium-to-long term. Any serious drive to recalibrate growth engines from excessive credit and investment to services will slow gross domestic product—probably to well below 6%. A positive because China getting a handle on duelling bubbles in credit, debt, property and pollution will stabilize Asia’s biggest economy, avoiding a Japan-like crash.

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Link here -http://www.livemint.com/Opinion/zrDX2pRi0kZyn168vQmRHP/Is-2018-Chinas-big-change-year.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter

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