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Chinese Q3 GDP climbed 7.4 per cent on the year, bang in line with expectations.GDP was up 7.7 per cent in the first three quarters, reaching 35.35 trillion yuan ($5.6 trillion), according to Xinhua.
The all important fixed asset investment, a gauge of capital spending, climbed 20.5 per cent on a year-to-date basis. This was slightly higher than expectations of a 20.2 per cent rise.
Industrial production climbed 9.2 per cent in September.
And retail sales were up 14.2 per cent on the year in September. This came in significantly higher than expectations of a 13.2 per cent rise.
Earlier today Bank of America’s Ting Lu wrote that there are signs of green shoots in the economy:
“This evidence comes from a wide range of sectors including transportation, commodity, exports, property market, credit and money data, tourism in Golden Week and restocking by manufacturing companies.
To be sure, we believe it might take another couple of quarters for growth to significantly recover. However, we believe the risk for a hard landing is getting increasingly smaller, we at least could be confident to expect stabilisation, and we even see some upside risk to our growth outlook (7.6% in both 2012 and 2013).”
The Shanghai Composite is up 0.38 per cent.
Chinese Q3 GDP data is just minutes away. China has been slowing down for some time now and some expect growth to bottom out this quarter.
Also out at 10 p..m. ET are industrial production, retail sales, and fixed asset investment (FAI) for September.
Here’s a quick look at expectations.
Q3 GDP: 7.4 per cent
FAI: 20.2 per cent
Industrial production: 9 per cent
Retail sales: 13.2 per cent