Is China Experiencing a Soft Landing...or Better?

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Sept. 10 (Bloomberg) –- On today’s “Global Outlook,” Mike McKee looks at China's industrial growth. He speaks on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

The markets today.

Stocks getting a boost from news about china.

The economy there is improving.

Let's bring in mike mckee, our economics editor.

Help the viewers understand as you look through the numbers what this all means in china.

The numbers have turned positive over the past month from china.

We have been worried about how much china might slow.

Their exports start to improve . the number that came out today that got everybody's attention, industrial production at a 17 month high.

10.4% year-over-year increase suggests that the chinese domestic economy is picking up, and that would be good news.

The one number that worried a lot of analysts was credit creation.

As you can see, it blew away estimates as much higher than last year.

That suggests that china's efforts to rein in credit growth may not be working, or they decided to back off.

The problem is, does china still face a bubble going forward?

If lending is rising, that is a good thing, because there is a demand for loans.

Where are they in terms of leverage, more or less leveraged than the u.s.? more leveraged at this point, and that is the problem.

Everyone is looking for bubbles to develop in china, and the chinese seem to be taking account of that by dialing back on this.

Are they propping up weak companies and local lenders are lending out cash and trying to build up their own economies at the expense of the greater nation?

We will see the kind of bubbles we saw starting earlier.

A lot of that lending growth a couple of years ago was real estate related.

Is there any evidence it is shifting to less real estate related loans.

We are seeing some

This text has been automatically generated. It may not be 100% accurate.


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