Retail sales improve
China's economic performance has stabilized since September as key indicators such as industrial production, fixed-asset investment and retail sales continued to improve.
Industrial production gained 9.6 percent from a year earlier in October, accelerating from the pace of 9.2 percent in September and August's 8.9 percent. The profits of Chinese manufacturers also surged 20.5 percent in October, the fastest in almost a year.
The positive signs have encouraged some economists to maintain a policy view of "no big stimulus."
Chang Jian, an economist at Barclays, predicted no interest rate cuts in 2013 and said the central bank would remain prudent with its liquidity management.
"We believe the upside conditions will likely sustain in the coming quarters, barring any sharp external shocks," Chang said. "This will be reflected via improving demand and industrial activity data."
However, Zhou Hao, an economist at Australia & New Zealand Banking Group Ltd, said China may need more monetary easing, such as one reserve requirement ratio cut this month, because market liquidity tends to tighten after a large amount of reserve repurchase agreements are maturing.
Feedback
RSS
