BlackRock in its mid-year investment outlook said it is optimistic on both Chinese equities and credit despite recent economic data showing uneven growth in the country’s services and manufacturing sectors.

In her interview with CNBC, Zhu reiterated the view that China’s growth momentum remains strong. Addressing concerns by some investors that the country’s recent corporate crackdown may indicate a wider systemic risk, Zhu said such regulatory actions are part and parcel of investing in emerging markets over the medium and longer term.

China’s willingness to acknowledge and manage such risks is a move in the right direction, but investors must also realize that those issues cannot be solved overnight, she added. She expects China to stall, and potentially reduce, the growth in corporate credit over the next three to five years.

“Any problem that’s taken seven, nine years to build up will not be resolved overnight so that path towards the resolution will not be a straight line either… When we do have the foundation of a very strong economy, when we do have a virtuous feedback loops going on, then the policymakers can afford to potentially slow down credit growth a little bit more aggressively,” Zhu said.