That industrial output in August slowed down to the lowest rate of this year may dampen the excessive optimism. All in all, China will still find it difficult to maintain a high level of growth rate. Policy options are also limited. The traditional one is to adopt a “strong stimulus” approach; that is, to implement loose fiscal and monetary policies to prop up investment. This may create new problems as side effects, let alone the government now seems to place a high priority on deleveraging. Another option is to carry out the much-needed structural reform to release growth potential, which we believe is the key to usher China’s economy into a new boom cycle. In retrospect, China was placed on a sustained growth trajectory three times, each following profound institutional changes. The first was the rural land reform in the early 1980s; the second was the establishment of a market-oriented economic system in the early 1990s; and the third was the state-owned enterprise reform in the late 1990s and China’s formal accession to the World Trade Organization in the beginning of the 21st century.