From the WSJ:
Numerous banks and brokerage houses have since created versions of what’s known asthe Keqiang or Li Keqiang index. While their underlying components vary – some add passenger traffic or floor space under construction, for example – most suggest growth in the world’s second-largest economy is closer to 5% these days than the official 7% figure.
Last week, China’s State Council, the nation’s cabinet, suggested in an online post that it was time for a new Keqiang index.The new measure should be focused on employment, personal income and environmental improvement to better reflect Beijing’s growing focus on innovation and quality of life, said the post, which cited stories by China Business News and the Economist.
The State Council has a point. Most Keqiang indices focus on old economic drivers like manufacturing, transportation and lending despite the growing role services and consumption are playing in the economy. Services accounted for 48% of gross domestic product in 2014, compared with 41% for manufacturing, while consumption last year was 51% of GDP, up from 49% in 2011. In China, consumption includes government spending.
That’ll be a nice fig leaf to cover the great Australian bust.
