Archive

G20: IF The IFIs…

• Despite failures over 25 years to truly get to grips with long-overdue IFI reform, there is reason for cautious optimism embedded in agreements reached at the recent G20 summit. Hopefully, this will be reinforced at the IMF/IBRD annual meetings next month.

By Alastair Newton

China industrial production 4.5% y-o-y (consensus 3.9) in Aug-23

- China's industrial production in August 2023 exceeded expectations, growing by 4.5% year-on-year, the highest rate since April 2023.
- Retail sales also outperformed, with a growth rate of 4.6% year-on-year, reflecting strong consumer demand.

China/US: A Chip Off An Old Block

• Contrary to much of the media coverage, the launch of Huawei’s Mate 60 Pro likely does not mark a major SMIC breakthrough in chip manufacturing but is almost certainly geopolitically, not commercially, motivated. Further similar — and self-harming — moves by Beijing may well follow.

By Alastair Newton

China M2 money supply 10.6% y-o-y (consensus 10.7%) in Aug-23

- China's M2 money supply growth rate in August 2023 stood at 10.6% year-on-year, marking the lowest growth rate since April 2022 and falling below both the one-year and long-run averages.
- The decline in M2 money supply growth suggests tight monetary conditions and a shift in the Chinese government's priorities, as reflected in the related releases on PPI and CPI inflation.