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Foreign investors upbeat on China’s economic prospect

Updated: Oct 25,2016 7:11 AM Daily

China’s macroeconomic data from the third quarter, released recently, has caught the attention of many foreign investment agencies that believe China’s economy is faring well and making progress in improving its economic structure.

British lender Standard Chartered Bank said that the investment data, especially private investment data, in August and September suggest that China’s economy is showing signs of stability with low risk of hard landing.

The bank forecasted that China’s gross domestic product (GDP) growth in the latter half of the year is expected to reach 6.9 percent, while the annual growth is likely to maintain 6.8 percent growth.

World financial service giant Barclays Capital Group said that China’s recent economic data shifted from a sluggish trend of growth, indicating strong signs of rebounding from the second to the fourth quarters.

Emerging markets economist Alex Wolf at Standard Life Investments said China’s economic growth still maintains a strong momentum, characterized by growth in consumption and investment sectors, and a stable development of industrial output driven by a series of fiscal and monetary policies since the end of the first quarter.

In the first three quarters, consumption contributed 71 percent to economic growth, up 13.3 percentage points from the same period last year. Wolf said consumption is becoming an important aspect to bolster China’s economic growth, which signifies that the demand structure is changing for the better.

In addition, Wolf said China’s PPI and CPI data reflected that bulk commodity markets in the country are gaining strength and overcapacity cuts in coal and steel industries made some progress.