China’s industrial production rose 5.6% in October
Manufacturing activity accounted for about 31.0% of China’s GDP (gross domestic product) in October 2015. According to the National Bureau of Statistics of China, industrial production in China rose 5.6% in October compared to 5.7% in September. The reading was below market expectations of 5.8%.
Manufacturing activity led industrial growth in October
An increase in industrial production was mainly due to a 6.7% rise in manufacturing activity followed by an increase in mining and quarrying by 0.4%. Utilities fell by 0.3% year-over-year in October. Mining stocks such as China Shenhua Energy (CSUAY) and Aluminum Corporation of China (ACH) have fallen 39.7% and 28.9%, respectively, as of November 11, 2015, from a year ago.
In terms of sectors, 37 industries within 41 industrial divisions kept year-over-year growth. The manufacture of non-ferrous metals increased 12.1%, followed by an increase in the manufacture of computer equipment, medicines, and motor vehicles by 11.7%, 10.0%, and 7.3%, respectively, over the past year.
Technology equipment stock for Actions Semiconductor (ACTS) rose 2.9%. China Digital TV Holding (STV) fell 46.1% from a year ago as of November 11. Mobile companies China Mobile (CHL) and China Unicom (CHU) fell 4.8% and 14.7%, respectively, over the same period.
Chinese industrial growth is experiencing a downturn with a significant decline in trading activities. Imports and exports have fallen 18.9% and 6.9%, respectively, over the previous year. Declining order book and production levels are keeping industrial growth lower for China. However, a pickup in retail sales and an increase in capital spending suggest that the economic sentiment is improving and may help it achieve its 7.0% annual growth target.
To find out more, you can read Falling Foreign Trade Raises Concern over China’s Future Growth.
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