There has been no significant slackening in Chinese lending growth, according to the statistics released today by China's central bank
John Robertson
PortfolioDirect
There has been no significant slackening in Chinese lending growth, according to the statistics released today by China's central bank. Outstanding loans in January were 14% higher than a year earlier. Today, also, the HSBC sponsored purchasing managers index for January pointed to a continuing contraction in manufacturing activity. Industry coverage in the bank's flash estimate is narrower than for the later final estimate and narrower still than the government's own measure which is usually released on the first day of each month. Taking the HSBC number at face value, however, suggests that Chinese borrowers are getting far less bang for their buck. The widening disparity between lending growth and economic activity suggests that China is failing to get an adequate return on its investment spending. The longer this goes on, the worse the growth record is likely to become.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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