CHINA'S ECONOMIC RECOVERY GAINS PACE

China's economic recovery accelerated in August after government investment continued to fuel growth and banks increased lending, new data released on Friday showed.

New loans rose unexpectedly to Rmb410bn in August, compared with Rmb356bn in July. But the amount was still down sharply from Rmb1,530bn in June as Beijing reined in bank lending amid fears of bubbles in the property and stock markets.

Industrial production expanded 12.3 per cent from a year earlier, more than economists' forecast, as state-funded projects drove output in heavy industries up 13.2 per cent year-on-year.

Fixed asset investment in the first eight months of this year rose 33 per cent from a year earlier, indicating modest acceleration as growth from the January to July period had been 0.1 percentage point lower.

China's aggressive stimulus measures, amounting to Rmb4,000bn, have been propelling economic growth, which hit 7.9 per cent in the second quarter. On Thursday, premier Wen Jiabao said that the mainland would not end its initiatives at a time when the global recovery remained uncertain.

“China's economic rebound is unstable, unbalanced and not yet solid,” said Mr Wen. “We cannot and will not change the direction of our policies when the conditions are not appropriate.”

Retail sales grew 15.4 per cent from a year earlier as domestic demand remained robust. Sales of motor vehicles were strong, up 34.8 per cent, as a result of government subsidies and tax cuts

Prices continued to fall with the consumer price index falling 1.2 per cent from a year earlier. But the decline was less than 1.6 per cent seen in July and economists warned that inflationary pressures would pick up as the economy recovers. The producer price index was down 7.9 per cent in from the same period in 2008.

“Generally speaking the figures were better than expected. They point to a sustainable recovery as domestic demand remains strong. There are even steady rises in some segments such as output. I think the economy will continue to grow steadily this year,” said Zhu Jianfang, chief economist at CITIC Securities in Beijing.

周五发布的最新数据显示，随着政府投资持续为增长提供动力，银行扩大放贷，中国经济在8月份加速复苏。

8月份新增贷款从7月份的3560亿元人民币意外升至4100亿元。但由于中国政府因担心房地产市场和股市泡沫而收紧了银行放贷，该数据仍远低于6月份的1.53万亿元。

工业增加值同比增长12.3%，高于经济学家预期，其中国家资助的项目推动重工业增长了13.2%。

今年前8个月固定资产投资同比增长33%，比1月至7月高0.1个百分点，表明固定资产投资增速略有加快。

中国总额达4万亿元人民币的大规模刺激措施一直在推动经济增长，第二季度中国经济增速达7.9%。周四，中国国务院总理温家宝表示，在全球复苏仍不确定的情况下，中国内地不会结束经济刺激举措。

温家宝表示：“中国经济企稳回升的态势还不稳定、不巩固、不平衡。我们不能也不会在不适当的条件下改变政策方向。”

由于国内需求保持旺盛，8月份零售总额同比增长15.4%。政府补贴和减税措施推动汽车销售实现强劲增长，增幅达34.8%。

物价继续走低，居民消费价格同比下降1.2%，但降幅低于7月份的1.6%。经济学家警告称，随着经济复苏，通胀压力将会抬头。工业品出厂价格同比下降7.9%。

中信证券(Citic Securities)驻北京首席经济学家诸建芳表示：“总的来说，这些数据好于预期。它们表明，随着内需保持强劲，经济有望持续复苏。工业产出等领域甚至出现了稳步上升。我认为中国经济今年将继续稳步增长。”