Aerial photo taken on Sept. 26, 2019 shows a light show at Lujiazui area in Pudong District of east China's Shanghai. (Xinhua/Ren Long)

Swiss investment bank UBS AG says the Chinese economy is stabilizing on policy support and less downside risk.

NEW YORK, Jan. 18 (Xinhua) -- The Chinese economy is stabilizing and would see 6 percent of growth in 2020 thanks to supportive policies and reduction of downside risk from trade tensions, according to a research note issued by Swiss investment bank UBS AG on Friday.

"We don't expect the pace of growth to slow as much as it did last year," said the report citing Chinese economic growth of 6.1 percent in 2019, down from 6.6 percent in 2018.

Chinese economic indicators in December 2019 showed signs of stabilization with industrial production, retail sales and fixed-asset investment all beating consensus estimates, said the report.

UBS expected Chinese orderly growth deceleration to continue amid structural reforms and China's gross domestic product (GDP) to expand 6 percent in 2020.

UBS added that accommodative policy and the reduction of downside risk following the signing of phase-one U.S.-China trade deal would help support Chinese economy and risk assets. ■