Global mining companies responded positively this morning to the news that China’s economy grew by 7.5% in the second quarter of 2014, in line with the full year forecast given by the Chinese government and ahead of the first quarter and consensus estimates of a 7.4% growth. The key industrial production number rose by 9.2% in June. Though many commentators have been suspicious of the accuracy of the figures given the control that the Chinese government has on the economy as a whole and the effect of areas such as shadow banking which mean that the financial state of many enterprises is not entirely transparent.
The Chinese government announced further infrastructure investment in areas like railways and housing earlier this year as growth slowed to an eighteen month low and bank loans and associated credit have surged in recent months despite worries about mountains of debt in regional government and major state backed businesses.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.
by contrarianuk
Chinese second quarter GDP comes in at 7.5%
Jul 16, 2014 at 11:10 am in Market Commentary by contrarianuk
Global mining companies responded positively this morning to the news that China’s economy grew by 7.5% in the second quarter of 2014, in line with the full year forecast given by the Chinese government and ahead of the first quarter and consensus estimates of a 7.4% growth. The key industrial production number rose by 9.2% in June. Though many commentators have been suspicious of the accuracy of the figures given the control that the Chinese government has on the economy as a whole and the effect of areas such as shadow banking which mean that the financial state of many enterprises is not entirely transparent.
The Chinese government announced further infrastructure investment in areas like railways and housing earlier this year as growth slowed to an eighteen month low and bank loans and associated credit have surged in recent months despite worries about mountains of debt in regional government and major state backed businesses.
Contrarian Investor UK
IMPORTANT: The posts I make are in no way meant as investment suggestions or recommendations to any visitors to the site. They are simply my views, personal reflections and analysis on the markets. Anyone who wishes to spread bet or buy stocks should rely on their own due diligence and common sense before placing any spread trade.