China's regulatory, environmental policy unlikely to be eased: JPMorgan's Jahangir Aziz

China's regulatory policy and environmental policies are unlikely to be eased, Jahangir Aziz, Head-Emerging Markets at JPMorgan, said on Tuesday. “The regulatory policy, and by that I mean environmental policy approvals etc, everything that goes into the regulatory side, is unlikely to be eased,” he said in an interview to CNBC-TV18.

The remarks come at a time when China's factory activity has unexpectedly shrunk in September due to wider curbs on electricity use and elevated input prices. China's PMI reading was at 49.6 in September versus 50.1 in August.

On the power situation, Aziz said, “The government is worried about it and they are coordinating the two planks:  the reduction of the carbon intensity... the decarbonisation plan, and at the same time, making sure that the spillovers from that into the rest of the economy are limited. Therefore, our guess is that you are going to see an improvement in the power situation going ahead.”