China Day
hina GDP grew 8.9% in third quarter vs. 9% consensus. All risky assets headed lower on the news, U.S. dollar higher. Puzzled, makes no sense. Bloomberg explanation: China’s Economy Grows 8.9%, Fastest Pace in a Year.
The media focus is on stimulus, monetary expansion. Chinese officials have already addressed those issues, at least verbal. In my view the depressed exports; over capacity; real estate bubble; credit boom are big issues and I am little bit skeptic on can China ride out of this recession smoothly. Correction today in Asia on concern of stimulus withdrawal.