- Shen Jianguang, Asia economist at Mizuho Securities
China's industrial production increased more than expected in November, suggesting government stimulus measures may be starting to drive a mild recovery in the world's second biggest economy. Output at factories, utilities and mines surged 6.2% last month from a year earlier, marking the first rise since August and a significant advance from October's figure of 5.6%, according to the National Bureau of Statistics. Furthermore, fixed asset investment came in also stronger than predicted, surging 10.2% year-on-year in the January to November period, unchanged from the January to October period. At the same time, retail sales increased 11.2% in November from a year ago, accelerating from the annual 11% rise in October. The positive November data suggest Beijing may still be on track to reach its 7% growth target for 2015.
The world's second biggest economy has struggled to gather steam over the last year, with manufacturing activity falling for the most of 2015, exports dropping sharply in recent months, and inflation easing to multi-years lows. In response to the weakening economy, the People's Bank of China has cut interest rates six times since November 2014 and lowered required bank reserves several times, freeing up more money to lend.
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