01-29-2016, 02:02 PM
China slowing? Maybe not..
China is not slowing. It is picking itself up slowly after a "recession" in early 2015. Car sales give us a steer. They collapsed early last year and touched bottom at 1.27m in July. Sales have been rising every month since, surging to a record 2.44m in December thanks to lower taxes. New registrations were up by 37pc for GM and 36pc for Ford and Mercedes. House prices have been climbing for three months. The nationwide index was up 1.6pc in December. Shanghai rose 15.5pc and Shenzhen 47pc. Even the "Tier 3 and 4" cities are coming back from an epic glut.
Hysteria over China has become ridiculous - Telegraph
A short-term economic rebound is already baked into the pie. Fiscal spending jumped 30pc in October and November. New bank loans and local government bond issuance - together, the proper measure of credit - reached a 12-month high of 14.4pc in December. It is stimulus as usual. The Politburo is back to its bad old ways. "Despite talk of deleveraging, credit growth continues to expand far more rapidly than GDP growth because, quite simply, they are not willing to tolerate any slowdown," said Prof Christopher Balding from Peking University.