JPMorgan has reduced its fourth-quarter growth forecast for China to 4.0% from 5.0% on Friday, citing the impact of power shortages and the recurrence of COVID-19 clusters on consumer spending and services.

"Looking back, we have downgraded China's growth forecasts five times since August," JPMorgan's Haibin Zhu said in a note, adding that the bank now expects 7.8% growth this year and 4.7% growth in 2022.

"In particular, to smooth out COVID-related volatility, we note that the average annual GDP growth rate has slowed significantly (compared to two years ago)."

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