This aerial photo taken on March 29, 2016 shows a view of the free trade zone in Shanghai, east China. (Photo: Xinhua/Ding Ting)
Chinese economists are concerned about China's economic decline and what, if anything, policymakers can do to arrest it, after China's economy grew at a slower pace in April and key economic indicators moderated.
Value-added industrial output, an important economic indicator, expanded 6 percent year on year in April, lower than the 6.8-percent increase for March, and the market expectation of 6.5 percent, official data showed on Saturday.
The country's fixed-asset investment and retail sales of consumer goods also eased slightly last month.
PACE SLOWER BUT GROWTH SOLID
CICC, a Beijing-based investment bank, attributed weak industrial output largely to a less favorable base effect compared with March, and one fewer working day than last April.
"The underlying trend of industrial production growth remains solid, with April industrial production growth higher than the 5.8-percent year on year expansion recorded in the first quarter," according to a CICC report.
In the first four months, China's fixed asset investment (FAI) growth softened to 10.5 percent year on year, lower than the market consensus of 11 percent.
Although FAI growth softened, growth of FAI measured in capital terms strengthened to 8.1 percent year on year in the January-April period, up from the 6.4 percent registered in the first three months, indicating a solid footing, said the CICC.
The slowdown in headline retail sales growth from 10.5 percent year on year in March to 10.1 percent in April was largely due to the decline of automobile sales driven by the implementation of new emission standards starting from April.
"On the other hand, retail sales of most other discretionary spending items edged up, including catering, home decoration, furnishing, jewelry, etc. Therefore, the underlying trend remains solid for consumption growth despite weaker auto sales," according to the report.
