China International Capital Corp (CICC) lowered the forecast for China's real GDP growth in 2016 from 6.9 % to 6.7 %.

    The downward adjustment was "largely driven by the softer-than-expected global demand recovery," CICC said in a research note.

    Consumption demand is expected to be largely stable, government investment may continue to register stronger growth than that of the private sector, and export demand may remain weak in the latter half of this year due to political uncertainties in Europe and the United States, the CICC said.

    The company maintained its consumer inflation forecast at 1.9 % for 2016, with the consumer price index trending down in the next few months before picking up moderately toward the end of the year.

    The country's GDP grew 6.7% year on year in the first quarter of this year, down from 6.8% in the final quarter of 2015.