Chinese economic data positive

Chinese economic data positive

Second-quarter economic data from China is showing stabilising growth, but the country is not out of the woods yet, JP Morgan warns.


JP Morgan global market strategist Marcella Chow says new renminbi loans and total social financing have strengthened off the back of “continued” mortgage loan demand.

“The overall strength of economic data in June means policymakers will likely refrain from ramping up policy easing. However, it is still too early to worry about tightening, especially as inflation remains steady,” she said.

Ms Chow said consumption as a contribution to GDP grew to 73.4 per cent in the first half of 2016, up from 59.9 per cent in 2015, pointing to “further progress in economic rebalancing”.

Nevertheless, she cautioned that GDP growth is likely to “ease modestly” in the second half of the year as the impact of earlier stimulus fade, with immediate easing policy unlikely.

“Looking ahead, we are conscious that the momentum in consumption growth may not be enough to fully offset the ongoing deterioration in private and manufacturing investment, amid the drag from the adjustment in overcapacity sectors.”

 

Read More:

Structural reforms key to restoring interest rates

Investors ‘misinformed’ about indexing: survey

FTSE rally ‘unjustified’: Columbia Threadneedle

NAB launches green bond for investors   

Super changes won’t limit savings

 

 

Chinese economic data positive
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

investordaily image

Warning lights flashing on Aussie equities

Roy Maslen

investordaily image

What’s in store for the economy in 2018?

Frank Uhlenbruch

ST Wong

Busting common passive investing myths

ST Wong