China reopening already noticeable: industrial production and retail sales up 2.4% and 3.5% in February

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Bankinter : Several positive data in China. While Retail Sales (Jan+Feb) improve to +3.5% year-on-year, as expected vs -1.8% previously, Industrial Production (Jan+Feb) improves to +2.4% year-on-year vs +2.6% esp. and +1.3% previously. Also, the Unemployment Rate (Feb) rebounds to 5.6% vs 5.3% esp. and 5.5% previously. Finally, the PBoC injected the largest amount of liquidity since December 2020 via a medium-term credit line. Specifically, it amounted to CNY 281 billion ($41 billion) net.

Opinion: positive data. The reopening of the economy after the pandemic and the celebration of the Chinese New Year are the main reasons behind this improvement in indicators. We expect the situation to continue to improve as the year progresses. The government expects the economy to grow by 5% this year, some way down from the historical average of +8.2%.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.