Difficult to continue the steel show decline Chinese old growth model

2017-07-05 15:56
Difficult to continue the steel show decline Chinese old growth model
Now many kinds of data in the alert, Chinese old growth model seems to shake and crumble. In March this year, cement production dropped 21% year on year, generating capacity by 3.7%, crude steel production in the first quarter fell for the first time in 20 years. These are reflected in the past Chinese important engines of economic growth -- housing investment fell.
Chinese National Bureau of statistics data released on Wednesday showed, China 1-3 this year, real estate development and investment growth fell to 8.5% in early 2009, to the lowest level since the global recession have China impact.
Zhu Haibin, chief economist at JP Morgan chase in Hongkong Chinese said, when it comes to China economic slowdown, we actually said is the rapid decline in real estate and steel and other traditional industries, new industries took the burden to the emerging industry, most can only be called a stabilizer, is not a new growth engine.
Since the first quarter economic growth rate in 2009 fell to the lowest China level, more pro growth policies is putting greater pressure to the Chinese Premier Li Keqiang introduction. In view of the fact that the purchase of housing policy measures, to cut interest rates two times and a lower reserve requirements for banks have failed to revive the real estate market, questioned the decision maker can reverse the situation is heating up.
Everbright Securities chief economist Xu Gao said in Beijing, the government in the past only Chinese Ma Xin infrastructure projects, total investment will be good, but now, increase infrastructure spending almost can not offset the impact of the weak real estate market. In order to promote growth, China to relax the real estate policy further.