Mike,
As reported in HK Standard:
THE mainland economy maintained smooth operations during
the first four months of this year, while the central
government's policies for expanding domestic demand and
investment in infrastructure took effect, according Xinhua
News Agency quoting a monthly report released by the State
Statistics Bureau (SSB) yesterday.
During the January-April period, China generated an industrial
added value of 608.7 billion yuan (HK$569.7 billion), up 7.9
per cent on an annual basis. However, the growth rate was
3.5 percentage points down from the same period in 1997.
The slowdown in the industrial sector should be regarded as a
result of the Asian financial crisis in addition to shrinking
consumption both at home and abroad, the SSB report said.
In April, the imports of industrial products increased by 7.2
per cent on the basis of the same month of 1997. This growth
rate was 12.3 percentage points down.
The country's investment in fixed assets amounted to 271.3
billion yuan in the first four months of this year, representing a
year-on-year increase of 12.2 per cent. The increase was 1.9
percentage points lower than the average for the first quarter
of this year.
A year-on-year increase of 15.3 per cent in investment was
registered in April.
During the January-April period, the investment in capital
construction projects grew by 11.7 per cent from the same
period of 1997. That in technical renovation and upgrading
projects, and the real estate sector increased by 11.4 per cent
and 12.7 per cent, respectively.
Meanwhile, China's retail sales amounted to 938.8 billion yuan
worth, up 6.9 per cent over the previous year's figure. The
retail markets registered a 7 per cent increase in cities and a
6.7 per cent rise in rural areas.
According to the SSB report, China registered a foreign trade
volume worth US$27.64 billion (HK$214.14 billion) in April,
up 6.3 per cent on an annual basis. Included were an export
volume worth US$15.95 billion, up 7.9 per cent over the
same period of 1997, and an import volume worth US$11.69
billion. Compared with the figure for the first quarter, export
growth decreased 5.3 percentage points.
In the first four months of this year exports amounted to
US$56.19 billion, a year-on-year increase of 11.6 per cent.
Imports stood at US$41.29 billion, up 3.1 per cent.
Retail prices went down by 1.9 per cent, while consumer
prices rose by 0.1 per cent.
To create an economic rebound, the government should offer
more aid to enterprises with good market potential.
IMO - The growth far exceeds the numbers being reported by other Asian countries considering the lack of investment from and export sales to the rest of Asia. Unless these numbers progressively worsen, there should be no rush for them to devalue the yuan.
For what it's worth,
Ron |
