Does Decline In Chinese Fixed-Asset Investment Signal The End Of Government-led Boom?

china oil

A fresh batch of economic data came out, and most of it seems pretty benign. Inflation ticked up a bit, though nothign alarming.

Still, via Reuters, this is interesting commentary from Citi analyst Ken Peng:

“The surprise that I see so far is from fixed-asset investment. Falling from 33 per cent to 32.1 per cent year-to-date, November as a single month has fallen off quite a bit. This has to do with the government’s intention to curb investment growth, especially the government-led- type. It is a good thing. The State Council said as much, saying it would control new project approvals. It was not referring to next year but probably more immediate.”

Other stats:

– Industrial output up 19.2 pct vs forecast 18.0 pct

— Urban FAI (ytd) up 32.1 pct vs forecast 33.0 pct

— Retail sales up 15.8 pct vs forecast 16.5 pct

— CPI +0.6 pct vs forecast +0.4 pct

— PPI -2.1 pct vs forecast -2.3 pct

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