20th January 2015 - Chinese Growth Data for 2014 - Review

Jan. 20, 2015 - PRLog -- Stock Port Associates is one of the world’s largest and most established offshore investment firms operating within a tax-favorable jurisdiction. Whether it’s dealing with new regulations, setting up an offshore presence, attracting new investors or identifying independent directors, we have the expertise to assist you.

20th January 2015 - Chinese Growth Data for 2014 - Review

Major Chinese Indexes as of 20th January 2015

SSE Comp - 3,148.66 (+1.04%)

Hang Seng - 23,864.93 (+0.53%)

Today the Chinese government announced a range of data but primarily confirmed that growth for 2014 looks set to be 7.4%, just under their target of 7.5%.

A strong last quarter helped the economy stay close to its target and increases in Factory Output and Retail Sales in December helped pull the year together. Factory Output was up 7.9% against analysts expectation of 7.4%. Retails Sales was also marginally higher with 11.9% booked against 11.7% predicted. This set growth for the fourth quarter of 2014 at 7.3%, the same as December 2013.

Local markets in China reacted well to the news after Monday saw them lose over 7.5% in what was the markets worst performance in over 6 years. In early trading on Tuesday the majority of local indexes had managed gains of over 1.5% on the news.

There were a couple of areas of concern. Most notably was power output, the data sometimes used as a guide to economic growth saw its lowest growth since 1998 with just a 3.2% increase over the previous year. This along with a poor performance in fixed asset investment of just 15.7% saw the outlook for 2015 to be set at just 7% by the government.

This latest round of data does highlight the growth potential still viable within the world's second largest economy. We could expect further Central Bank stimulus over the coming months however many will look to see the impact of Chinese New Year at the end of January as a strong guide as to how the economy of China will fair in 2015.

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DISCLAIMER  The views, opinions, findings, and conclusions or recommendations expressed on this service are those of the author(s) and do not necessarily reflect the views of the Stock Port Associates.All market data within this release is for your general information and enjoys indicative status only. Stock Port Associates does not accept any responsibility for its accuracy or for any use to which it may be put. All share prices and market indexes delayed at least 15 minutes. 52 week high and low values are calculated from close price data.