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Home / World / The fight against smog could mask this year's data

The fight against smog could mask this year's data



The Chinese government has announced that it will further reduce pollution. Prime Minister Li Keqiang said in his annual government work report last week that the authorities will increase pollution prevention and control in the coming year.

At the same time, Li said he had a lower economic growth target than last year and said the country must be "fully prepared for a tough fight."

The economic outlook does not bode well. Lu Lu Nomuras noted that the backlog in April and May of last year is likely to "negatively impact" year-over-year comparable economic activity data over the coming months. Lu cut its UK domestic growth forecast for the first quarter to 6.2 percent year-on-year and insisted on an even lower 5.7 percent growth for the second quarter.

China's economy grew by 6.6 percent last year. According to the government, this was the slowest pace since 1

990. According to Beijing, this year's target is 6 to 6.5 percent growth.

Analysts also pointed out that Thursday's release of the data is that the majority of fixed income investment originates from real estate spending growth in economically critical areas was less robust:

  • Production investment fell to 5.9 percent in January and February , compared with 11.6 percent in the fourth quarter.
  • Infrastructure investment increased by 2.5 percent. compared to a rate of 5.7 percent in the three months earlier.

"The data from (Thursday) is the third wake-up call in the market in six days, according to export data from last Friday and the credit data from S unday," said Larry Hu, head of Chinese macroeconomics at Macquarie, on Thursday in a report , "All point to a strong growth wind laying the ground for a choppy market like 2012 (bottom-up revision and multiple upward revision, left-facing charts) rather than a 2017 home-market (both earnings and multiple volume)."

One of few highlights should be the stabilization of retail sales. Hu expects to grow by 8 percent this year, slightly below the 9 percent growth of the previous year.

Shanghai Composite Drops 1.2% on Thursday It has fallen more than 3.5% over the past five trading days. Nevertheless, the index has risen by 19.9 percent in the year to date.


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