AP Photo/Andy Wong
- China has only a narrow path to avoid economic stagnation, according to TS Lombard.
- Its economy is likely hitting a soft bottom soon as opposed to a balance-sheet recession.
- Stimulus from the government can offset weak investment and low consumption, but only partially.
China's fate won't end up looking like that of Japan's in the 1990s, but its economy is headed for a "grinding" slowdown, with just a narrow path for policymakers to avert more serious economic pain, according to TS Lombard.