“Chinese industrial companies’ profits rose for a third month in November, supporting a rebound in economic growth that may ease the transition to the nation’s new leadership.
Net income gained 22.8 percent from a year earlier to 638.5 billion yuan ($102 billion), theNational Bureau of Statistics said today in Beijing, after a 20.5 percent rise in October.
The world’s second-biggest economy is set for the first pickup in growth in eight quarters after the government accelerated investment-project approvals and boosted spending on infrastructure. The new Communist Party leadership led by Xi Jinping is seeking to sustain the recovery without fueling property-price bubbles or adding to bad-loan risks in the banking system.
“China’s economic recovery trend is quite clear now, and growth in the first half of 2013 will be strong as local governments are eager to start new investment projects now,’ Shi Lei, a Beijing-based analyst with Founder Securities Co., said before the release. ‘‘At the same time, recovery prospects are clouded by weak external demand and a possible crackdown from regulators on the shadow banking system.”
The Shanghai Composite Index (SHCOMP) of stocks advanced yesterday to the highest level in five months after investors wiped out losses of as much as 11 percent during this year. The gauge was 0.1 percent lower as of 11:30 a.m local time today on concern a rally that lifted shares from an almost four-year low is excessive.
Beige Book
A separate report pointed to limits on China’s recovery….”
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