Thursday, August 12, 2010

Is China on the way towards meltdown?

Hey people I am back, huh!
You are right was like six months ago since my last posting lor!

Meltdown no lah!
It's more like a regulated slow down by the Chinese central bank. Growth in Chinese investment slowed down from the record highs of the stimulus in 2009 by the China government. Factory output slowed further last month since the global financial crisis.

These figures along with slower retail sales add to a softening growth that paints a picture of a meltdown. But this does not hold and whatever it is the 2nd largest economy is poise to growth at 9% as projected.

But statistic shows otherwise; annual Chinese factory output growth slowed to 13.3% July '10 over June '10 of 13.7%. However, their forecast is 13.2% annual growth.

I quote Sheng Laiyun of National Bureau of Statistic China, "China's growth is slowing, but we see no sign of a hard landing."

Another quote; Ting Ling an economist at America Merrill Lynch "real growth for the month of July'10 was steady"

As Beijing fears an inflated property market, their actions are merely to prevent a hard landing and at the current moment or moving forward they are clearly signs.

So all is well and carry on. Some good and positive will come from this round of correction after the recent small uptrend.

TjLim

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