UBS cut its 2016 growth forecast for China due to increasing risks. The economy is expected to expand 6.2% in 2016, down from the previous estimate of a 6.5% growth.

"Despite seemingly better-than-expected near term growth, we see greater downward pressures for the economy in 2016. Property destocking has been sharper than previously envisaged, bringing with it a greater negative spillover effect on China's industrial and mining sectors, where much excess capacity remains," UBS China economist Wang Tao.