The growth of China's economy will not likely reached the official target; however, global investment firm PIMCO is bullish about the future prospects of the Chinese economy.    

Last Wednesday, PIMCO noted that the recent economic slowdown is due to declines in the property sector and the controlling activities of the "shadow banks." PIMCO portfolio manager Isaac Meng also said that the country's export could no longer count on low labor costs and the flexible Yuan currency to fuel its growth.

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In contrast to the government's projection of 7 percent, PIMCO estimates that China's economy will grow by 6 percent. Despite the gloomy forecast, PIMCO still believes in the country's future economic growth since it continues to invest in China's fixed income instruments and stocks.

PIMCO's Asian credit portfolio manager Luke Spajic said that they are currently purchasing both government bonds as well as bank and quasi-sovereign debts. Spajic adds that the Chinese equity market looks encouraging to investors.   

In response to the country's economic slowdown, its central bank has again lowered the interest rates. This week's cut will be the third one in the span of six months and this had fueled speculation that the country's GDP may not be able to achieve the "around 7 percent" goal.

In 2014, China's economy grew by 7.4 percent which was the lowest rate achieved by the country in 24 years. John Higgins from Capital Economics notes an economic slowdown trend for China, where he believes that it will take some time for the economy to bounce back.

Despite the country's economic slowdown, the Shanghai Composite Index has grown by an impressive 36 percent this year. According to Higgins, the growth in Chinese stock market was due to increased interest in equity investments and the surge of retail investors, after authorities lowered some of the market restrictions.

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