What is driving Chinese growth

Saxo Capital Markets Australia

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What is driving Chinese growth? (VIDEO) The latest data suggests China's industrial production is at its slowest since 2008, with property sales falling, and fixed asset investment growth also very low. According to Asia-analytica Research Pauline Loong, the drivers are mainly policy-based, as China is not a free market economy: China is not a free market economy, it is not an open economy. A lot of what determines the earnings landscape is policy. So if you focus too much on the numbers, the decimals, you miss the big picture. And the big picture is slower growth is here to stay, no matter how you slice and dice the numbers and hope for an uptake. Loong estimates growth will remain at 6 to 7 per cent growth for the next two years. She also cautions investors to consider data carefully, as China revises their data frequently, not only adjusting for statistical errors, but also the base for the calculations which makes it hard to consider the data as a consistent series or pattern. (VIEW LINK)


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