China Economic Update – 17 April 2014

There were few surprises in the latest Chinese data release, with the weakening trends evident since the latter part of last year continuing into the first quarter of 2014, with slower economic growth, comparatively soft industrial production and investment data continuing

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There were few surprises in the latest Chinese data release, with the weakening trends evident since the latter part of last year continuing into the first quarter of 2014, with slower economic growth, comparatively soft industrial production and investment data continuing to point downwards.

There remains some speculation regarding Government stimulus in response to the weaker performance. Last year’s ‘mini-stimulus’ was critical to the Chinese economy exceeding its growth target, and an April announcement from the State Council regarding investment in rail infrastructure was seen by some observers as the 2014 equivalent. Instead, it appears to be an attempt to encourage private sector investment (via favourable tax treatment to investors) and may not have the same impact.

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