Salient to Investors:
Lu Ting at Bank of America said China’s recovery is being driven primarily by domestic demand but international demand is picking up too, and will boost market confidence in China’s recovery amid the turmoil in some emerging markets.
Zhu Haibin at JPMorgan raised estimates for China’s growth to 7.6 percent for Q3 and to 7.5 percent for Q4 on strength in infrastructure and real-estate, a pickup in exports, and the mitigated downside risk to growth in the near term.
Deutsche Bank lifted its Q3 growth estimate to 7.7 percent. Credit Suisse increased its 2013 forecast to 7.6 percent.
Helen Qiao at Morgan Stanley said input prices are usually a good tracker of the strength of aggregate demand relative to supply so the latest reading suggests demand has strengthened notably.
China’s top solar-panel makers are returning to profitability following two years of losses as higher demand and prices drive up margins.
Ding Shuang at Citigroup said the current rebound in China’s growth is still benefiting from loose monetary and credit conditions earlier this year, but since May, conditions have tightened considerably and that will weigh on investment and growth toward the end of 2013.
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