Confusing Data from China; What’s Really Happening?

By Sasha Cekerevac for Investment Contrarians

Recently, we have heard and seen some data stating that the Chinese economy is beginning to rebound. Many analysts have started to raise their economic forecast for the Chinese economy in 2013.

One of the difficult aspects when calculating an economic forecast for the Chinese economy is that much of the official data from China are questionable.

While recent data have shown that the Chinese economy has begun re-accelerating during the fourth quarter 2012, new information raises some questions.

The China Beige Book (CBB) International states that, in its analysis of the fourth quarter, it sees a significant decline in corporate loans. As the CBB states, its editors were “shocked” that new loans accounted for less than 20% of the total lending. (Source: Harjani, A., “The China Beige Book Has Some ‘Shocking’ Data,” CNBC, January 16, 2013.)

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