14 June 2016 at 9:50 GMT
- Chinese expenditures show stimulus impact
- Crude oil production plunges
- Soy meal futures go vertical
By Walter Kurtz*
Today we look at several developments in China.
1. The country's fixed asset investment growth slowed to the lowest level since 2000. Current investment activity is dominated by the government as it tries to target a specific growth rate.
2. One can see the fiscal stimulus in Beijing's official expenditures.
3. Regional government tax revenue growth has picked up recently amid improved property investment. It's back to everyone making money on land development deals.
4. Bloomberg's China GDP tracker shows the overall growth stabilising. The question, of course, is whether this is sustainable without the fiscal stimulus.
5. China's domestic crude oil production saw the largest year-on-year decline in 15 years.
6. Monday's yuan drop reignited jitters around the RMB depreciation versus the dollar. Beijing is trying all it can to stem capital outflows but significant loopholes around capital controls remain.
7. China's equities are under pressure again.
8. Soy meal futures in China go vertical, with Beijing struggling to contain speculative activity in agricultural futures.
— Edited by Michael McKenna
* Walter Kurtz is an alias
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