According to the official figures from the National Bureau of Statistics, China’s industrial production rose by 6.2% in November this year from a 5.6% increase in October. Experts forecasted 5.7% growth.
This result can help Beijing reach its economic growth target of 7% in 2015. However, even this pace of GDP growth will be the slowest over the last 25 years.
From January to November this year, fixed asset investment increased by 10.2% on a year basis. Meanwhile, retail sales surged by 11.2% in November. Over the past year, the Chinese government cut its interest rates six times, carried out a large number of infrastructure projects and also cut required bank reserves several times, allowing more lending to the real sector.
Nevertheless, there is still weak demand for commodities in China and real estate developers can’t attract enough clients.
In this context, profit of state-owned companies is falling. The country sees the highest deflation in three years.
Experts forecast that risks will remain at least for the first half of 2016.
In terms of real estate and manufacturing, investment in these sectors will remain low. Real estate investment rose only 1.3% year -over-year.
High rate of investment holds in infrastructure. However, it is determined by government spending and a rush to finish projects before the end of the year.
Meanwhile, the People’s Bank of China cut the yuan rate against the US dollar by 0.2% to the lowest level since July 2011 at 6.4495.
The yuan continues to depreciate despite the fact that the International Monetary Fund decided to include the yuan in the SDR basket from January 1, 2016.
