A friend in Hong Kong wrote some thing to me, where I allow to pick the main aspects.

Data published by National Bureau of Statistics of China lately confirmed that the world’s 3^rd largest economy is on track.

Retail sales gained a 16.2% year-on-year increase, which is 0.7% above the figure of last month. Some economists hold the opinion that China’s economy rebound is mainly due to its huge stimulus package. This mainly drive up its fixed investment, and this kind of economic growth mode is not sustainable when government retreat from this huge economy. The steadiness in the private consumption gives the economy a long-term momentum which we notice as a positive factor.

Very important was the industrial output that recorded a 16.1% increase, which is the highest during the past 19 months. What should be paid more attention to behind this increase, is some other key related data. The PMI, which empirically should be lower due to the seasonal factor, increased to a year-high of 55.2. Especially the data on PMI showed a substantial decrease of the inventory of completed goods. All the data confirmed the potential expansion of factories’ production.

 Last but not least, the export, though still fell 13.8% year-on-year, is the smallest decrease in 10 months. As the Chinese government has publicly reinforced its determination to hold its exchange rate unchanged and the global economy is alive gives investors even more appetite on the export companies.

 No doubt that all the data will give renewed happiness in the stock market. Though it should more be taken as a stable story than a train to jump on.

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