Service sector the key to consumer-led growth

China's service sector will offer investment opportunities as the nation rebalances its economy away from State-directed investment to consumer-led growth, said Stephen Roach, the former chairman of Morgan Stanley, on Wednesday.

Roach said that China slowed down its economy after careful consideration because it is transforming itself into consumer-led growth.

He said he looked favorably on China's economy and was confident about China's decision to have reforms.

Roach added that China's stock market is not good, but it will be better than the US market after five years.