China’s macro economy running smoothly

On Dec. 16, Fan Zhiyong, a research fellow from the National Academy of Development and Strategy at Renmin University of China released a monthly report on macroeconomic indicators at a meeting in Beijing. According to the report, in November, China’s economy entered a stage of steady growth. Increasing private investment is the prerequisite for maintaining steady growth. Cutting capacity and other measures of supply-side structural reform raised the price of up-stream products to some extent, which is conducive to increasing profits of up-stream enterprises and accelerating deleveraging. In November, the producer price index remained high, and its rise will slow down in a short period. It is unlikely that the consumer price index will go up. The RMB exchange rate and cross-border capital flows were also running smoothly. The influence of the US Federal Reserve’s decision to raise interest rates and reduce the size of its balance sheet on the Chinese economy was controllable in general.