China Growth Drops to 9.9%, CPI Up 4.6%

123jump.com Staff
20 Oct, 2008
New York City

For the first nine months economic growth in China eased to 9.9% from 12.2% in the prior year peorid and consumer prices in September rose 4.6%. China trade surplus at the end of first three quarters of this year rose to $181 billion, a decline by $4.7 billion.

[R]6:00AM New York, 6:00PM Hong Kong - China''s economic growth eases 9.9% in the first nine months. Consumer prices rose 4.6% in September. Trade surplus in the first three quarters was $181 billion.[/R]

Market Sentiment

In Hong Kong trading Hang Seng Index increased 5.3% or 768.80 to 15,323.01, and the China Enterprises Index of Hong Kong listed mainland shares, or H shares, gained 6.2% or 433.60 to 7,441.13. In Shanghai trading CSI 300 Index advanced 3.5% or 63.47 to 1,896.73.

Daily turnover on main-board turnover stood at HK$53.7 billion from HK$59.3 billion on Friday last week.

China GDP Rises 9.9% in Nine Months

The National Bureau of Statistics of China reported that the gross domestic product of China rose 9.9% to Rmb20.1 trillion from the same period a year earlier, but 2.3 percentage points lower than a year ago.

The value of the primary industry increased 4.5% to Rmb2.1 trillion, while the secondary industry and the tertiary industry advanced 10.5% to Rmb10.1 trillion and 10.3% to Rmb7.8 trillion respectively.

Grain production in the period rose by 2.6%, gaining for the fifth consecutive year and output of cotton and meat remained unchanged.

Value added growth of state-owned and state-holding enterprises rose 11.8%; collective enterprises gained 9.6%; shareholding enterprises increased 17.5%; and enterprises owned by investors from Hong Kong, Taiwan and Macao edged up 12.7%.

Heavy industry soared 16% and the light industry advanced 13.1%.

The Statistics Bureau noted that investment in fixed assets in the first nine months of the year increased 27% to Rmb11.6 trillion, as investment in urban areas soared 27.6% to Rmb9.9 trillion.

Investment in rural areas gained 23.3% to Rmb1.6 trillion.

CPI Rises 4.6% in September

The NBS also reported that the consumer price index rose 4.6% in September and gained 7% in the first three quarters, with prices rising 6.7% in cities and 7.7% in rural areas.

Food prices jumped 17.3% and prices for housing climbed 7%.

Producers'' prices for manufactured goods advanced 8.3%, while the purchaser''s prices for raw material, fuel and power gained 12.4%.

In addition, the total value of imports and exports in the January to September period jumped 25.2% to $1.9 trillion as exports rose 22.3% to $1 trillion and imports increased 29% to $893 billion.

Trade surplus in the period stood at $181 billion.

Gainers & Losers

Hong Kong stocks increased supported by mainland stocks after Beijing yesterday resolved to maintain growth in the fourth quarter by increasing tax rebates for garments and textiles and slashing transaction fees for home sales.

Property companies rose. Overseas Land Investment soared 12.3% and China Resources Land jumped 13%.

Esprit Holdings declined 4% after brokerage CLSA said the company may scrap its share buyback plan to focus on paying dividends. Giordano fell 3.5% on tighter conditions in the credit market.

Sinopec Corp rose 10.6% after Deutsche Bank increased its operating profit margin on the stock by 39.1% as crude oil prices fall.

Dah Sing Financial declined 13.6% on reports its subsidiary Dah Sing Bank, was being investigated by Hong Kong authorities for alleged misconduct in the sale of Lehman Brothers investment products. Dah Sing Banking Group fell 14.1%.

Anhui Conch dropped 4%.