The ruling body of China’s Communist Party, the Politburo, has pledged to keep the economy growing in “a reasonable range” through 2016 according to the country’s official news agency, Xinhua.

While neither the Politburo nor Xinhua reported any specific numbers to demark the “reasonable range”, analysts at Osaka Financial believe that 6.5% to 7% are a reasonable assumption.

“China’s leaders have a deal with the people. Basically, they provide the environment in which people can prosper and attain high living standards and the people behave themselves and leave the government to do pretty much as they please. Growth much below 7% per annum and the government would find itself effectively failing to keep up its end of the bargain,” explained Satoshi Mihuko, chief economist at Osaka Financial.

The Xinhua communiqué said that macro-economic policies would remain largely unchanged while micro-economic policies would be “flexible”, likely meaning policymakers will take further steps to help companies reduce costs and help encourage mergers & acquisitions in the hope of cutting down the number of so-called “zombie firms”.

“China has struggled to hit its official target of 7% growth this year as slowing growth in its export markets hurts demand for its goods. Domestic consumption has helped do some of the heavy lifting in terms of GDP but exports still account for nearly 40 of the Chinese economy,” explained Mihuko.

Osaka Financial maintains its bullish outlook for China and predicts the economy will rebound steadily in 2016 and favors Chinese mainland equities over the US stocks it considers over-valued.

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