Betty Wang, senior China economist at ANZ, points out that for the Chinese economy, pullback in April mainly originated from country’s manufacturing sector, with fixed asset investment (FAI) and industrial production (IP) registering sharp slowdowns.
Key Quotes
“IP growth of the manufacturing sector dropped to 5.3% y/y in April from 9.0% in March due to weaker automobile and electric machinery production. FAI growth in the sector also slowed to 2.5% y/y in the January-April period compared with 4.6% in January-March. However, FAI growth in the infrastructure sector maintained its previous pick-up pace, rising 4.4% y/y in the January-April period.”
“Meanwhile, property investment held up well in April, with a big jump in developers’ funding conditions. Property investment growth rose to a new high (since 2015) of 11.9% y/y over the first four months of this year. During the same period, growth of developers’ funding, which holds the key to property investment, also jumped to 8.9% y/y, the fastest in 20 months, as bank loans, advance payments, and mortgages grew at a quicker pace. This is also consistent with our observations of the rebound in home sales, which increased 0.4% y/y in January-April, representing the first positive y/y growth this year.”
“Today’s data suggests the need for proactive policy support, especially amid an escalation in the China-US trade disputes.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.