China released a batch of data today --Q1 GDP growth came in at a 7-year low, but March indicators gave a more upbeat view of the economy.

China's gross domestic product or GDP grew 6.7 percent in the first quarter from last year. That was in line with expectations and easing slightly from 6.8 percent in the fourth quarter of 2015. While the number marks the weakest pace of expansion since 2009, other activity data shows that China's economy may be finding traction. 

Looking forward, Sheng says that China's economic growth may go through some fluctuations in the short term but that in the long run, it will maintain a mid to high growth rate. 

The latest data is certainly showing stabilization of the Chinese economy, but some are saying it is due to the frequent monetary and fiscal policy easing. The question now is how can China maintain its growth rate while carrying on its reform agenda to reduce overcapacity and achieve long term economic sustainability.