evening all
apparently there were some talks going on in the east over the weekend
anyone know anything about it or the outcome
must say im also bullish for tomorrow...but only for the day
This is not the outcome of discussions, but information relevant to it from Marketwatch
Reuters Enlarge Image
Encouraging economic reports are likely to encourage top Communist Party officials meeting over the weekend to update China’s economic policy.
BEIJING—China posted signs of steady economic growth coupled with modest inflation in October, providing encouraging news on the economy as a key policy meeting of the Communist Party got under way.
Industrial production rose 10.3% year over year in October, beating expectations and September’s 10.2% rate, according to official data released Saturday. Inflation ticked up slightly, to 3.2% from 3.1%, staying within the government’s stated comfort range.
The healthy showing by the industrial sector is a key indicator of the economy’s overall condition and underscores rising demand for China’s exports, said Tao Wang, an economist at UBS.
“Momentum is still pretty strong,” said Wang. “It may not be picking up much, but it’s not slowing either.”
Exports grew 5.6% year over year in October, after a slight fall the previous month, boosted by higher demand from the U.S. and Europe—an indication that a global economic recovery is gaining traction.
“Combined with the better export data in Korea and Taiwan, China’s export numbers suggest some—although not yet decisive—-improvement in global demand momentum,” said Louis Kuijs, an economist at RBS. He said higher exports will be a major engine of growth in the Chinese economy in coming months.
The picture of a steadying economy is likely to cheer policy makers meeting in Beijing to discuss initiatives that the party leadership says will boost consumption and innovation and move away from investment and exports as drivers of growth. Economists say the shift should help sustain growth over the longer term. But the rollout could sap some of the economy’s momentum. So the stronger growth may give Chinese leaders some maneuvering room as they shift economic gears.
China’s gross domestic product growth, after slowing in the second quarter, rebounded to 7.8% in the third on the back of government infrastructure spending and tax cuts. Most economists think economic growth in the final quarter will exceed 7.5%.
In other data released Saturday, retail sales grew 13.3% year over year in October, in line with September, and output of electric power climbed 8.4% from a year ago compared with 8.2% in September.
The producer-price index, which measures prices at the factory gate, was down 1.5% year over year, for the 20th month in a row in negative territory. But it was flat in month-on-month terms, indicating that the deflation which has hammered profits in the industrial sector is easing.
During the policy meeting, which ends Tuesday, officials and state media have said reforms likely to be discussed include liberalizing interest rates, raising prices for water and energy to encourage conservation and allowing a greater role for private capital in competing with a more favored state sector.
Other mooted changes include giving farmers clearer rights to their land and promoting urbanization by offering a better access to social services to the millions of rural migrants living in China’s cities. Such reforms pose a huge administrative challenge and face opposition from within the government.
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