TO UPWARD MOVE NEGATIVE NEWS IS ALSO USEFULL
BECAUSE...... A MATTER OF JUSTIFICATION!!!!!!!!!!!!!!!!!
China’s Slowest GDP Growth in 2 1/2-Years Boosts Scope for Easing: Economy
By Bloomberg News - Jan 17, 2012 1:47 PM GMT+0530
China’s economy expanded at the slowest pace in 10 quarters as Europe’s debt crisis curbed export demand and the property market weakened, sustaining pressure on Premier Wen Jiabao to ease monetary policy.
Gross domestic product rose 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said in Beijing today. Growth exceeded the 8.7 percent median of 26 estimates in a Bloomberg survey, staying above the 8 percent that signals a “soft landing” for China, according to SinoPac Financial Holdings Co., which correctly predicted the GDP number.
Asian stocks rose on speculation policy makers will ease lending curbs and increase fiscal spending to bolster the world’s second-biggest economy. Liang Wengen, China’s richest man and chairman of Sany Heavy Industry Co., told Wen this month that construction-machinery demand is weak and called for more infrastructure investment.
“Decelerating GDP growth will provide more room for policy makers to shift towards a pro-growth bias after an extended tightening cycle,” Jing Ulrich, chairman of global markets for China at JPMorgan Chase & Co., said in a note after the data. “At this juncture, the challenge for policy makers is to implement measures that boost domestic demand without setting back progress made in curbing inflation.”
The Shanghai Composite Index (SHCOMP) climbed 4.2 percent today, the most since October 2009, on expectations for more monetary easing and on speculation the government will support equities. The MSCI Asia Pacific Index gained 2 percent at 5:14 p.m. in Tokyo.
Property Meltdown Risk
Full-year economic growth slowed to 9.2 percent from 10.4 percent in 2010, today’s report showed. Industrial production increased 12.8 percent in December from a year earlier, more than the median estimate of 12.3 percent in a Bloomberg survey and a 12.4 percent increase in November. The economy grew 2 percent last quarter from the previous three months, when it expanded 2.3 percent.
China is prepared for a slowdown in economic growth and a mild moderation is “desirable,” Ma Jiantang, head of the statistics bureau, said at a briefing today. The government has set a target of 7 percent annual expansion for the current five- year plan that runs through 2015 and will focus more on the quality of growth, he said.
“The data confirmed no hard landing is likely, more so given the loosening stance already adopted by the policy makers,” said Shen Jianguang, Hong Kong-based chief greater China economist for Mizuho Securities Asia Ltd. Still, there is “no room for complacency, given the risks of a property sector meltdown and global crises,” said Shen, who expects further relaxation in credit, an expansionary fiscal policy and loosening in the property sector in the second quarter. ......contd.........
Pls visit for further reading......
http://www.bloomberg.com/news/2012-01-17/china-gdp-expands-at-slowest-pace-in-10-quarters-may-prompt-policy-easing.html
FOR NOW ENJOY THE BULL RUN ACCROSS THE GLOBE.......DESPITE THE RATE CUTS,
GLOOM IN THE EUROPE GROWTH....BUT....
BECAUSE...... A MATTER OF JUSTIFICATION!!!!!!!!!!!!!!!!!
China’s Slowest GDP Growth in 2 1/2-Years Boosts Scope for Easing: Economy
By Bloomberg News - Jan 17, 2012 1:47 PM GMT+0530
China’s economy expanded at the slowest pace in 10 quarters as Europe’s debt crisis curbed export demand and the property market weakened, sustaining pressure on Premier Wen Jiabao to ease monetary policy.
Gross domestic product rose 8.9 percent in the fourth quarter from a year earlier, the statistics bureau said in Beijing today. Growth exceeded the 8.7 percent median of 26 estimates in a Bloomberg survey, staying above the 8 percent that signals a “soft landing” for China, according to SinoPac Financial Holdings Co., which correctly predicted the GDP number.
Asian stocks rose on speculation policy makers will ease lending curbs and increase fiscal spending to bolster the world’s second-biggest economy. Liang Wengen, China’s richest man and chairman of Sany Heavy Industry Co., told Wen this month that construction-machinery demand is weak and called for more infrastructure investment.
“Decelerating GDP growth will provide more room for policy makers to shift towards a pro-growth bias after an extended tightening cycle,” Jing Ulrich, chairman of global markets for China at JPMorgan Chase & Co., said in a note after the data. “At this juncture, the challenge for policy makers is to implement measures that boost domestic demand without setting back progress made in curbing inflation.”
The Shanghai Composite Index (SHCOMP) climbed 4.2 percent today, the most since October 2009, on expectations for more monetary easing and on speculation the government will support equities. The MSCI Asia Pacific Index gained 2 percent at 5:14 p.m. in Tokyo.
Property Meltdown Risk
Full-year economic growth slowed to 9.2 percent from 10.4 percent in 2010, today’s report showed. Industrial production increased 12.8 percent in December from a year earlier, more than the median estimate of 12.3 percent in a Bloomberg survey and a 12.4 percent increase in November. The economy grew 2 percent last quarter from the previous three months, when it expanded 2.3 percent.
China is prepared for a slowdown in economic growth and a mild moderation is “desirable,” Ma Jiantang, head of the statistics bureau, said at a briefing today. The government has set a target of 7 percent annual expansion for the current five- year plan that runs through 2015 and will focus more on the quality of growth, he said.
“The data confirmed no hard landing is likely, more so given the loosening stance already adopted by the policy makers,” said Shen Jianguang, Hong Kong-based chief greater China economist for Mizuho Securities Asia Ltd. Still, there is “no room for complacency, given the risks of a property sector meltdown and global crises,” said Shen, who expects further relaxation in credit, an expansionary fiscal policy and loosening in the property sector in the second quarter. ......contd.........
Pls visit for further reading......
http://www.bloomberg.com/news/2012-01-17/china-gdp-expands-at-slowest-pace-in-10-quarters-may-prompt-policy-easing.html
FOR NOW ENJOY THE BULL RUN ACCROSS THE GLOBE.......DESPITE THE RATE CUTS,
GLOOM IN THE EUROPE GROWTH....BUT....
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