China’s economic indicators are showing an accelerated decline

According to Breitbart, Zhang Ping, the minister in charge of the National Development and Reform Commission, was speaking a day after China announced a 108 basis-point interest rate cut - the steepest in 11 years and was by far the most aggressive in a series of moves since September - and a few weeks after an unprecedented 4 trillion Yuan ($590 billion dollar) stimulus package. "In November, a number of economic indicators are showing accelerated decline. The production at some enterprises has encountered difficulties, especially enterprises that focus on exports," he said.

October figures were already far from stellar, demonstrating just how vulnerable China was to the global financial meltdown. In one example, China's industrial output grew by just 8.2 percent in October from a year earlier, a steep decline compared with 17.9 percent year on year growth in October 2007. China's economy, the world's fourth-largest, expanded by 9.0 percent in the third quarter, the lowest level in more than five years.

The World Bank this week said it expected the Chinese economy to grow by 9.2 percent in 2008 before hitting a 19-year low of 7.5 percent in 2009.

Asia stocks posted a fifth day of gains on Thursday, supported by hopes that policy action will ultimately prevail after China slashed borrowing costs, though U.S. data underscored the scale of the global slowdown.

Chart courtesy of Reuters' Asia Market Data
Stocks in the Asia-Pacific region outside of Japan were up 2.3 percent, set for a fifth straight day of gains, according to an MSCI index. Still, the index is on track for a seventh month of declines, down about 9 percent in November.

Hong Kong's Hang Seng index rose 1.9 percent, while Shanghai's composite index rose 1.8 percent.

In Japan, the Nikkei share average climbed 1.95 percent, supported by a rally in the technology sector, which globally has been hit hard because of its dependence of business and consumer spending.

European shares rose in early trade on Thursday, led by oils and banks and tracking U.S. and Asian gains.

U.S. markets are closed on Thursday for a public holiday after the S&P 500 U.S. stocks index chalked up a four-day winning streak, its longest run since May.

Chart courtesy of finance.google.com
According to Xinhua, China's total social investment is predicted to reach 18 trillion yuan (2.64 trillion U.S. dollars) in 2009, the National Development and Reform Committee (NDRC), the country's top economic planner, announced on Thursday.

"China's total social investment exceeded 13 trillion yuan in 2007 and is expected to top 16 trillion yuan this year," said NDRC head Zhang Ping. "The 4 trillion stimulus package is only part of the whole picture."

ETFs/Stocks :

iShares FTSE/Xinhua China 25 ETF        FXI  $27.23
ProShares UltraSh FTSE/Xinhua China 25  FXP  $49.70

Related Posts :

China's Stimulus Plan is not actually adding a new spending

Sources :

1. Breitbart: China warns of worse to come for its economy, November 27, 2008 03:36 AM EST
2. The New York Times: Chinese Rate Cut Lifts Asian Markets, November 27, 2008
3. Xinhua: Chinese shares up 1.05% after unusually large rate cut, November 27, 2008 15:18:34
4. Xinhua: China's social investment to total 18 trln yuan in 2009, November 27, 2008 13:20:32
5. Reuters: Nikkei rises 2 pct, shippers up on China econ hopes, November 27, 2008 1:47am EST

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