China Economy

One the reasons for overnight excitement in stocks appears to have been upbeat Chinese bank lending data for September which beat expectation at 1005 trillion yuan versus 885 billion expected.

From the monthly BofAML survey of instos via FTAlphaville: It looks rather like the Shanghai bust was having a really toxic affect on sentiment despite its marginal importance to Chinese growth.

China has released its September trade data and it’s a mixed bag.

Yesterday the Shanghai bourse piled on 3% to break out of its recent trading range.

From card carrying China bull James Laurenceson via BS: Xenophobic, even racist: that’s the accusation being levelled at federal Labor in its handling of the China Free Trade Agreement.

Cross-posted from Investing in Chinese Stocks.

From Deutsche via FTAlphaville: We believe the fiscal slide is now coming to its end, because the recovery of land sales seems to have firmed up and gathered momentum in recent months.

Shanghai is up 3.23% after reopening today but that disappointed the fruit loops driving the dead cat and shares have slowed.

By Leith van Onselen Find above an interesting video report aired on ABC’s The Business yesterday, taking a look inside China’s real estate bust, whereby years of over-building have left a huge glut of homes and commercial properties across many of China’s smaller cities.

From Fairfax: China’s foreign-exchange reserves fell by a record last quarter as the central bank sold dollars to support the yuan after a surprise devaluation spurred bearish bets on the currency.

Very.

From Deutsche: Our thesis over the last few years has basically been that the global financial system/economic fundamentals are so bad that its good for financial assets given it forces central banks into extraordinary stimulus and for them to continue to buy assets in never before seen volumes.

Cross-posted from Investing in Chinese Stocks Centaline says home sales through September 27 were up a very slight 0.43% in its 54-city survey, while CREIS reports home prices increase 0.28% in its 100-city survey.

China has released its official PMI and it showed that things are not at least getting worse any faster, coming in at 49.8.

From Capital Economics: The People’s Bank today published its three quarterly surveys – of 20,000 urban households (depositors) with bank accounts, 5,000 businesses and 3,100 banks.

From Westpac: The Westpac MNI China Consumer Sentiment Indicator increased 1.7pts from 116.5 in August to 118.2 in September.

With every investment bank and his dog expecting an H2 rebound in Chinese growth (for no apparent reason given the credit rebound has been literally Shanghaied by the stock market bail out), it is interesting to note a Chinese investment banks that expecting further deceleration instead.

From Citi’s Willem Buiter’s: Is China Leading the World into Recession?

From Bloomberg: China is on a path similar to the one that preceded Japan’s lost decade in the 1990s as the country’s debt level grows twice as fast as its economy, according to Jim Chanos, the hedge fund manager who predicted the 2001 collapse of Enron Corp.