China Keeps Expanding… Economically

September 20, 2011 James Heinsman Hedge Fund News

According to the China Federation of Logistics and Purchasing, the July’s Purchasing Managers’ Index was listed at 50.7 in comparison to June’s 50.9. The number surpassed every forecast listed in a Bloomberg News survey of thirteen economists. Still, export orders decreased to their lowest level in 17 months, as the floundering economies of both Europe and the U.S. limit the demand for Chinese goods.

David Cohen, an economist with Action Economics, said “growth has decelerated in the face of the global soft patch in export demand and the weight of tightening.” The government, he added, “will be able to achieve a soft landing, tightening enough to prevent inflation from getting out of hand but at the same time allowing continued growth.”

According to China’s central bank, the fundamentals of economic growth are “still good.” Various investment firms, such as ARC Investment Partners and Lunar Capital, are firmly rooted in China and continue to see potential in the region despite the global economic crisis.

In response to the decline in export growth, measures to boost domestic sales are currently underway.

According to Chen Linhui of the Department of Foreign Trade and Economic Cooperation, these measures will include “simplifying the approval process for domestic sale, establishing convenient financing, expanding sales channels and enhancing brand image.”

 

ARC Investment Partners, Chen Linhui, Department of Foreign Trade and Economic Cooperation,

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