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How China's 'new normal' affects investors

Beijing seems fine with slower growth and sees domestic demand as key to its economy

PRECARIOUS PERCH: The danger of very slow growth is that firms or even local governments could have trouble paying their debts and be pushed into default.

Hong Kong

ON a tour of central Henan province last May, China's president, Xi Jinping, first raised the notion of the economy adjusting to a "new normal". Eight months later, with the economy growing at its slowest pace in more than two decades, it is increasingly clear what this...