Tradeline Financials - Chinese Economic Review - Week 28, 2014
This week has seen some key economic indicators out of China so far which have added weight to speculation that Chinese exports orders are falling and that domestic demand is currently driving the economy.
Chinese exports rose 7.2% in June over the previous year and this was its best paced move in 5 months yet significantly lower than a Reuters poll held recently which forecast 10.6% growth for the same period. Imports were also down under analyst expectations at 5.5%, all be it only slightly and better than May's negative results.
The combined Import Export figures showed a growth of only 1.2% over June 2013 however this did see the Trade Surplus reduces from Mays $35.9Bn to $31.6Bn for June.
Export data has been a major indicator to how well the local economy has recovered from its first quarter and although some data has been weak, it appears the measures implemented by the government have had some positive effect.
Early next week we receive figures on GDP Growth, Industrial Production and Retail Sales which will all be eagerly awaited as further indications of a resilient economy and proof that local demand is indeed stepping up and covering the shortfall for export orders.
At the end of the week the House Price Index will be announced and this again will look to advise us as to whether the housing market in China has been reined in by the policies put in place earlier this year.
Chinese Indices as of 10th July 2014:
Hang Seng - 23,235.40 +0.26%
SSE Comp - 2,040.06 +0.07%
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