china's industrial output increased 16.3%

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    Tuesday, November 15, 2005

    China's industrial output increased 16.3 percent in the first 10 months of this year, state media reported Monday, indicating production remained high despite economists' warnings about oversupply.

    Mainland factories reported production increased by 5.69 trillion yuan (HK$5.46 trillion) year on year, according to the China Securities Journal, which cited Ma Liqiang, director of the Economic Operating Bureau under the National Development and Reform Commission.

    The output growth rate was unchanged from the growth rate for the first nine months of this year and slightly lower than the 16.9 percent for the January to October period last year.

    The National Bureau of Statistics is due to release the industrial output figures today.

    Ma said that during the first 10 months of the year, China's power generation was up 12.8 percent year on year, coal production rose 10.4 percent, and coal reserves designated for power generation rose 125 percent.

    Oil production rose 10.3 percent, oil imports were up 5.7 percent, value- added oil production was up 7.2 percent, diesel rose 9.7 percent and gasoline production was up 3.7 percent.

    During the January-October period, freight transported by rail rose 7.3 percent and turnover at the ports reached 44.1 million containers, up 21.6 percent year on year, Ma said.

    For the leading 129 industrial products in China, 55.6 percent saw increased inventories year-on-year, the report said.

    Foreign direct investment fell 2.1 percent in the first 10 months of the year. Actual foreign investment slid to US$48.4 billion (HK$377.52 billion), the Ministry of Commerce said. Contracted foreign investment jumped 22.5 percent from a year earlier to US$145.1 billion.

    Rising consumer spending and low wages, coupled with a government- backed push to expand transport and power infrastructure, is helping China attract overseas investment from firms such as Ford Motor. Banks including Citigroup are also seeking stakes in local counterparts.

    Ford last month began production at a new facility in Chongqing city that can churn out 150,000 cars a year. Citigroup is considering a bid for control of Guangdong Development Bank, which aims to be the first to sell 51 percent of its shares to private investors.


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