Digesting recent economic numbers, financial institutions across the globe have reached a general consensus: China’s economy has bottomed out.
Data released last week by the National Bureau of Statistics showed that China’s economic growth slowed to an annual rate of 7.4 percent in the third quarter. However, September data indicated a pick-up in economic activity.
With China seeing the lowest growth in history in the last four quarters , it seems to be a consensus with economists that China had bottomed out in this year’s first half. In the same breath we have seen some positive news for the third quarter gross domestic growth and better than expected data for September. This all points to a stabilizing economy and one that is poised for a good run for 2013.
“Overall the September data release painted a consistent picture of a pickup in domestic activities on the back of recovering domestic and possibly external demand, as well as accommodative monetary and financing conditions,” Barclays economists, lead by Huang Yiping, wrote in a research note.
I think this goes to prove that message we have been trying to convey to our clients. The story behind China is not broken all the fears and negative news appears to just static in the background. Staying invested long term and adding to positions at all time lows will make a great an positive impact on clients portfolio’s for years to come.
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Written by: Sam A.