Is China’s Economy a Red Flag for Bulls?

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Although many have been looking to China’s growing economy, the country’s retail sales and industrial output had the weakest start to a year since the recession in 2009. Retail sales increased 12.3% in the first two months of the year from a year ago. Industrial production rose 9.9% in the same time period. Both figures failed to meet expectations, which leads some to question the stability of the country’s economic recovery.

This information might delay monetary tightening under the new leadership this year. The new premier, Li Keqiang is faced with the task of recovering from slow economic growth at the same time as getting surging credit and asset prices under control.

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The slowing of sales comes after a crackdown by the new Communist Party chief who made efforts to cut down on lavish spending by government officials. Statistics data bureau also shows that catering sales growth has slowed to 8.4 percent from 13.3 percent, which it was the same period last year…

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