This quarterly report analyses the macroeconomic situation of China and China’s outbound investments. The analysis shows that China’s GDP growth is below expectations, primarily because of a slowdown in domestic consumption growth. However, aggregate social financing has experienced substantial growth, and the property market prices are still rising. This leaves Chinese policymakers with a difficult challenge – how to enhance economic growth, stimulate consumption and also cool down real estate prices, while loosening monetary policy. With regard to outbound investments, China experienced steady growth during the first quarter of 2013, and invested in diversified industries and regions.