China's Economy: Some Reason for Hope

Soaring stocks, rising steel prices, and a glimpse of a real estate recovery suggest business confidence is growing as China's massive stimulus package kicks in

The economic news from China looks anything but encouraging these days. The export slump is deepening, corporate earnings in the third quarter fell 13% from a year earlier, while industrial output growth has hit a seven-year low and cash-flow problems are plaguing airlines, manufacturers, and beleaguered property companies. The latest evidence of a slowdown: China's auto sales fell 10% in November from a year earlier.

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