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| China's economic growth picks up speed in third quarter | China's economic growth picks up speed in third quarter |
| (35 minutes later) | |
| China's economic growth picked up pace in the July-to-September period - the first rise in three quarters. | China's economic growth picked up pace in the July-to-September period - the first rise in three quarters. |
| The world's second-biggest economy grew 7.8%, from a year earlier, up from 7.5% expansion in the previous quarter. | The world's second-biggest economy grew 7.8%, from a year earlier, up from 7.5% expansion in the previous quarter. |
| Other data released also showed a growth in industrial output, retail sales and fixed asset investment. | Other data released also showed a growth in industrial output, retail sales and fixed asset investment. |
| After years of blistering growth, China has seen its pace of expansion slow recently and there have been fears that growth may slow further. | After years of blistering growth, China has seen its pace of expansion slow recently and there have been fears that growth may slow further. |
| China has set a growth target of 7.5% for the year. Analysts said the latest numbers indicated that it was likely that Beijing would meet this. | China has set a growth target of 7.5% for the year. Analysts said the latest numbers indicated that it was likely that Beijing would meet this. |
| "This is an indication that China's economic growth is holding up in a range which is within the comfort zone of both the Chinese policymakers as well as global watchers," said Song Seng Wun, a senior economist with CIMB Research . | "This is an indication that China's economic growth is holding up in a range which is within the comfort zone of both the Chinese policymakers as well as global watchers," said Song Seng Wun, a senior economist with CIMB Research . |
| 'Keep it going' | 'Keep it going' |
| Over the past few decades China has relied heavily on its exports and manufacturing sectors as well as government-led infrastructure spending to help boost growth. | Over the past few decades China has relied heavily on its exports and manufacturing sectors as well as government-led infrastructure spending to help boost growth. |
| However, a slowdown in key markets such as the US and Europe has hurt demand for its exports. | However, a slowdown in key markets such as the US and Europe has hurt demand for its exports. |
| As a result, it has been trying to spur domestic demand to offset the decline in foreign sales and also to rebalance its growth. | As a result, it has been trying to spur domestic demand to offset the decline in foreign sales and also to rebalance its growth. |
| Earlier this year, it unveiled fresh measures to help boost the economy. | Earlier this year, it unveiled fresh measures to help boost the economy. |
| From 1 August, China has suspend value-added tax (VAT) and turnover tax for small businesses with monthly sales of less than 20,000 yuan ($3,257; £2,125). | From 1 August, China has suspend value-added tax (VAT) and turnover tax for small businesses with monthly sales of less than 20,000 yuan ($3,257; £2,125). |
| The cabinet said the move would benefit more than six million small companies and boost employment and income for millions of people. | |
| Policymakers said they would also implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises. | Policymakers said they would also implement measures to simplify customs clearance procedures, cut operational fees and facilitate the exports of small and medium-sized private enterprises. |
| The cabinet also announced plans to completely open China's railway construction market to private investors to develop the sector further. | |
| It said it would set up a railway development fund, with the initial money coming from the government. | |
| Analysts said the moves were starting to have an impact on the growth numbers. | Analysts said the moves were starting to have an impact on the growth numbers. |
| "There is certainly a build up of momentum among the small manufacturers, which is an indication that China's policies targeted at them are working," said Tony Nash, vice-president at IHS. | "There is certainly a build up of momentum among the small manufacturers, which is an indication that China's policies targeted at them are working," said Tony Nash, vice-president at IHS. |
| Factory output rose 10.2% in September, from a year earlier. Meanwhile, retail sales rose 13.3% and fixed asset investment jumped 20.2% during the month from levels a year ago. | Factory output rose 10.2% in September, from a year earlier. Meanwhile, retail sales rose 13.3% and fixed asset investment jumped 20.2% during the month from levels a year ago. |
| Tim Condon of ING added that the measures may help China sustain its growth rate in the current quarter as well. | Tim Condon of ING added that the measures may help China sustain its growth rate in the current quarter as well. |
| "The mini-stimulus we've seen is enough to keep it going at this pace in the fourth quarter," Mr Condon said. | "The mini-stimulus we've seen is enough to keep it going at this pace in the fourth quarter," Mr Condon said. |
| Sustainability concerns | |
| However, there have been some concerns over whether the economic rebound is sustainable in the long run, not least due to the continued rise in property prices. | |
| Property prices have now risen for eight months in a row, despite government efforts to cool the market. | |
| Some analysts have said that China's new leaders, who took charge in March, have so far tolerated the price rises due to concerns over slowing economic growth. | |
| According to some estimates, about 25% of overall investment in China goes towards property, making it one of the most important growth sectors. | |
| But the continued surge in prices has fanned fears that asset bubbles may be forming. | |
| "Between real estate and the lending environment, there are concerns that things may be heating up," said Mr Nash of IHS. | |
| "If not addressed properly, and in time, it could pose a serious threat to China's growth." | |
| Analysts said that with growth rebounding, Beijing may take measures to try and curb speculation in the property market. | |
| "We think the recovery in the third quarter was mainly driven by the strong momentum of the property market," said Shen Jianguang, chief China economist with Mizuho Securities in Hong Kong. | |
| "The government concerns about an over-heated property market are increasing, and tougher measures to curb rising prices may be forthcoming. | |
| "We expect gross domestic product (GDP) growth will slow to 7.6% in the fourth quarter," he added. |