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Friday, Oct 18
More on China Q3 GDP: Investment well above consumption
- Q3 GDP growth of +7.8% was the fastest this year, reflecting a "mini fiscal stimulus" that included railway spending and tax cuts.
- However, Bank of America economist Ting Lu believes that the "growth peak" is "now behind us."
- Nine-month GDP rose 7.7%, above the government's annual target of 7.5%.
- Investment accounted for 56% of growth, well above the 46% for consumption, while exports subtracted 1.7%. The figures indicate the job the government has to do in its attempt to rebalance the economy towards more consumption.
- Meanwhile, home sales jumped 34% on month in September after the banks loosened lending requirements in order to stem the economic slowdown earlier this year. On the other hand, the government also wants to cool the frothing housing sector.
- Shanghai Composite +0.2%.
- ETFs - Stocks: FXI, GXC, PGJ, YAO, FCHI, PEK, CAF, YXI, XPP, FXP, MCHI, YINN, YANG, TCHI, CHXF, KFYP, HAO, ECNS. Bonds: DSUM, CHLC. Currency: CNY, CYB, FXCH