CSI300 to get a boost?
The Chinese data from last Friday was broadly positive with Q4 GDP coming in on estimates and the y/y figure a slight miss at 6.1% vs 6.2% expected. This is still within the target range of 6-6.5%, so no great drama with that print. I am also persuaded by the argument that as China is now entering a developed status, then double digit GDP growth is no longer a reasonable expectation. In a sense the more developed you are, the smaller the gains are likely to be. China's stats bureau commented on the numbers as showing signs of 'improvement'.
Industrial production the star of the show
The Industrial production print showed some good strength and was the star release. I came across a Bloomberg piece last week that explained that the CSI300 tends to track the uptick in Industrial production. With GDP pretty steady, then the other aspects of the release - like Industrial Production - comes into focus. Take a look at the chart below showing this relationship and a potential boost for mainland Chinese stocks.
