Morgan Stanley raises growth forecast

US finance services giant Morgan Stanley has revised its estimate of China's economic growth rate lot
this year tip to 7.5 per cent from 6.5 per cent . South China Morniug POAI said. The bank's
chief economist Stephen Roach said that it had been wrong to cut the estimate because of
Sars. and that China was the only bright 5pot in a global economy still in fairly serious
difficulty.
Talking of the pressure being put on
China by its trading partners
to revalue its currency, Roach said that he agreed with China's leaders that this was not
the tune to do it. China had first to reform its banking system and develop its financial
sector. meaning that currency convertibility could be not be honoured for some
years.