China: GDP clocked 6.7%/yr amongst firm activity indicators - TDS

Research Team at TDS, notes that the Chinese Q1 GDP expanded by 6.7%/yr as widely expected, although a solid minority looked for 6.8%.

Key Quotes

“Rapid credit expansion to support the economy (i.e. housing and investment) is raising some red flags. The government GDP target for this year is 6½-7%, so falls within that range.

The March suite of real activity indicators were all firm as expected. Retail sales rose by 10.5%/yr (mkt 10.4%) while industrial production jumped to 6.8% (mkt 5.9%, highest f/c was 6.6%). Investment expanded by 10.7%, topping mkt 10.4%. Mar loans and finance rebounded strongly after a flat February.”