China’s economy improved in the first two months of 2022, with main indicators beating analysts’ estimates, but the surge in Omicron cases will weigh on the outlook. CSI 300 Index down -4.57%, CNY USD down -0.25%
- Industrial output grew 7.5% in January-February from a year ago, the fastest rate since June 2021, and rose from 4.3% gains in December.
- Retail sales, a measure of consumption that has been slowing down since COVID-19 emerged, grew 6.7% year-on-year amid surging demand during the Lunar New Year Holidays and Winter Olympic Games.
- The retail sales also signaled the quickest surge since June last year and topped expectations of a 3.0% increase in the poll. The sales figure grew by 1.7% in December.
- Iris Pang, Greater China chief economist at ING, stated that the strong performance of the world’s second-largest economy in the New Year might have helped China’s Central Bank to hold policy rates steady on Tuesday.