Howard Marks, a market veteran, warns that achieving China's economic growth target presents a 'Herculean challenge'.

• Despite the challenges, Howard Marks, a seasoned investor, expressed optimism regarding China's economy.
• The co-chairman of Oaktree Capital Management stated that he remains optimistic about China's long-term prospects, provided they execute effectively and maintain a constructive approach towards the rest of the world.
• The world's second-largest economy, China, is predicted to miss its growth target of "around 5%" for 2024, according to experts.

Despite the challenges, Howard Marks, a seasoned investor, expressed optimism regarding China's economy.

The co-chairman of Oaktree Capital Management stated that he remains optimistic about China's long-term prospects, provided they execute effectively and maintain a constructive approach towards the rest of the world.

Marks stated to CNBC's Emily Chan at the third Global Financial Leaders Investment Summit hosted by the Hong Kong Monetary Authority that "Although China's growth rate target may seem modest compared to their past, it is still significantly above average for the rest of the world, and will be an immense challenge."

Despite projections from Bank of America and Citigroup that the world's second-largest economy will grow at under 5%, China has set a growth target of "around 5%" for 2024.

Despite recent stimulus measures, the World Bank predicts that China's growth rate will decline from 4.8% in 2024 to 4.3% in the following year.

The World Bank identified slow Chinese consumer spending, a weak property market, and an aging population as major challenges for the world's second-largest economy.

Marks stated that perpetual stimulus cannot generate economic growth, which is why China's growth rate is decreasing and their use of stimulus is decreasing. However, they are attempting to find the right combination to address the challenges. Marks expressed optimism that China would be able to overcome these challenges.

In response to concerns about increased tariffs on Chinese exports following Donald Trump's 2024 presidential win, China recently unveiled a five-year plan worth 10 trillion yuan ($1.4 trillion) to address local government debt issues and announced additional economic support for next year.

In September, the People's Bank of China reduced the reserve requirement ratio by 50 basis points to increase liquidity in the Chinese economy, while banks are now required to hold less cash. Meanwhile, President Xi Jinping led a meeting to emphasize the need for stronger fiscal and monetary support to halt the decline in the real estate market.

Marks stated that when there is an excessive amount of stimulus in the property sector, resulting in an overabundance of buildings, a period of readjustment is necessary.