China GDP Surges at 11.9%; Inflation 2.4%

Mayank Mehta
15 Apr, 2010
New York City

The GDP expanded at 11.9% in the first quarter ending in March and inflation in the month was 2.4%. The second double digit expansion in a row prompted the government to tighten mortgage lending on some home purchases. Talks of higher interest rates gained momentum after the GDP data.

[R]9:00 PM Hong Kong, China – The GDP expanded at 11.9% in the first quarter ending in March and inflation in the month was 2.4%. The second double digit expansion in a row prompted the government to tighten mortgage lending on some home purchases. Talks of higher interest rates gained momentum after the GDP data.[/R]

China reported second consecutive quarter of double digit economic expansion but inflation rose less than expected. The economy expanded at the fastest pace since second quarter 2007.

The economy expanded in the first quarter at 11.9% from a year ago and consumer prices increased 2.4% in March according to the latest data released by the statistics bureau. Producer prices increased 5.9%.

Industrial production soared 18.1% in March and retail sales in the month soared. Auto sales in China surged 76%

The State Council within hours of the GDP data tightened the home lending requirements for second homes. China’s Cabinet raised down payment requirements for second homes to 50% from the current 40% and minimum rate for loan was set at 110% of benchmark rates.

Hang Seng index in Hong Kong increased 36.39 or 0.16% to 22,157.82 and CSI 300 index in China lower 9.13 or 0.27% to 3,394.57.

Shanghai Movers

China Vanke Co., Ltd the property business slipped 1.0% to 9.11 yuan and other developers fell after China raised the lending requirements for real estate purchases.

GD Midea Holdings Co Ltd dropped 1.3% to 21.20 yuan after the appliance maker’s subsidiary plans to divest 100% stake in Wuxi based company.

Gemdale Corporation the property developer fell 2.0% to 12.81 yuan.

Gree Electric Appliances, Inc the maker of air conditioners decreased 1.2% to 26.22 yuan.

Poly Real Estate Group Co., Ltd declined 1.3% to 18.54 yuan.

HK Movers

Agile Property Holdings Limited slipped 3.0% to HK$9.69.

Bank of China Limited closed unchanged at HK$4.24.

CNOOC Limited the offshore energy explorer added 3.8% to HK$14.16.

HSBC Holdings plc added 1.7% to HK$83.95.

PetroChina Company Limited advanced 1.3% to HK$9.47.