Economic recovery firmly underway

China's economy remains on a solid track to recovery as price levels picked up while corporate borrowing increased last month, experts said on Wednesday...

Backed by recovering domestic demand and rising commodity prices globally, the growth in China's producer price index, which gauges factory-gate inflation, turned positive for the first time in 12 months, coming in at 0.3 percent year-on-year last month, the National Bureau of Statistics said on Wednesday.

The strong financing demand from corporations and households also indicated a sustained economic recovery. China's new yuan-denominated loans totaled 3.58 trillion yuan ($555.4 billion) in January, up 225.2 billion yuan year-on-year, the People's Bank of China, the central bank, said on Tuesday. Experts said it was the largest-ever new yuan loan amount for January.

"The latest data show that recent local COVID-19 cases have not impeded the overall recovery of China's economy, and economic growth may speed up substantially in the coming months," said Tang Jianwei, chief researcher at the Bank of Communications' financial research center.

As the economy continues to recover and buoy production activity, the growth in the producer price index is expected to further accelerate, Tang said.

The prospect of steady recovery has helped lift investor confidence, experts said. Foreign direct investment into the Chinese mainland, excluding the financial sector, expanded by 4.6 percent year-on-year in actual use to 91.61 billion yuan in January, the Ministry of Commerce said on Wednesday.

Chinese onshore equities leaped on Wednesday, with the benchmark Shanghai Composite Index rising 1.43 percent to close at 3655.09 points, the highest level in five years, according to market tracker Wind Info...

...figures have provided further evidence that there is no need to be too concerned about the potential for a sudden or sharp tightening of monetary policy, ...


Economic Recovery firmly underway

Source China Daily

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