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How significant are China’s Third Plenum reforms?

China's leaders unveiled a detailed and comprehensive plan to reform the economy at the end of last year. The early signs on implementation are encouraging. As a result, we think 2014 will be a pivotal year for China's economy, setting it up for more sustainable growth over the medium term. In the near term though, efforts to slow credit and investment mean that - contrary to consensus - we expect GDP growth to slow over the next couple of years.

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