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Country Briefing: China Yardeni Research, Inc. December 22, 2019 Dr. Edward Yardeni 516-972-7683 [email protected] Debbie Johnson 480-664-1333 [email protected] Mali Quintana 480-664-1333 [email protected] Please visit our sites at www.yardeni.com blog.yardeni.com thinking outside the box

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Page 1: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

Country Briefing:China

Yardeni Research, Inc.

December 22, 2019

Dr. Edward Yardeni516-972-7683

[email protected]

Debbie Johnson480-664-1333

[email protected]

Mali Quintana480-664-1333

[email protected]

Please visit our sites atwww.yardeni.comblog.yardeni.com

thinking outside the box

Page 2: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

Table Of Contents Table Of ContentsTable Of Contents

December 22, 2019 / Country Briefing: China www.yardeni.com

Yardeni Research, Inc.

Real GDP 1Industrial Production 2Electricity 3-5Manufacturing PMI 6-9Manufacturing & Non-Manufacturing PMIs 10Retail Sales 11Autos 12Trade Balance 13Exports & Imports 14-16Export Shares 17Exports to 18-19Trade Balance by Regions 20Exports to China 21Railways Traffic 22Producer Price Index 23-25Consumer Price Index 26-28China vs. US Inflation 29-30Stock Market 31-32Money Growth & Inflation 33Social Finance 34-35Bank Loans 36Monetary Policy 37PBOC Balance Sheet 38Exchange Rate 39International Reserves 40-41China vs. US Monetary Indicators 42-43Industrial Production & Retail Sales 44Railway Freight Traffic 45Bank Loans 46

Page 3: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200

5

10

15

20

25

0

5

10

15

20

25

Q3

quarterly percent change, saar (5.2)

yearly percent change (6.0)

Source: China National Bureau of Statistics and Haver Analytics.

yardeni.comCHINA: REAL GDP

Figure 1.

Real GDP

Page 1 / December 22, 2019 / Country Briefing: China www.yardeni.com

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Page 4: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202030

90

150

210

270

330

390

450

30

90

150

210

270

330

390

450

Dec

NovNovCHINA INDUSTRIAL PRODUCTION*(2005=100, sa, ratio scale)

* Value added basis.Source: IMF International Financial Statistics.

yardeni.com

Figure 2.

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20222

4

6

8

10

12

14

16

18

20

22

2

4

6

8

10

12

14

16

18

20

22

Nov

CHINA: REAL GDP & INDUSTRIAL PRODUCTION(yearly percent change)

Real GDP (6.0)Industrial Production* (6.2)

* Value added basis.Source: Haver Analytics.

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Figure 3.

Industrial Production

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Page 5: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020600

1200

1800

2400

3000

3600

4200

4800

5400600066007200

600

1200

1800

2400

3000

3600

4200

4800

5400600066007200

Nov

CHINA: ELECTRICITY OUTPUT(100 million KWH, ratio scale)

3-Month AverageActual

Source: Haver Analytics and China National Bureau of Statistics.

yardeni.com

Figure 4.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020-15

-10

-5

0

5

10

15

20

25

30

35

-15

-10

-5

0

5

10

15

20

25

30

35

Nov

CHINA: ELECTRICITY OUTPUT(yearly percent change)

in 12-Month Moving Average (5.7)in 3-Month Moving Average (7.1)

Source: Haver Analytics and China National Bureau of Statistics.

yardeni.com

Figure 5.

Electricity

Page 3 / December 22, 2019 / Country Briefing: China www.yardeni.com

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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020-15

-10

-5

0

5

10

15

20

25

30

35

200

300

400

500

600

700

12/20

Nov

CHINA: ELECTRICITY OUTPUT vs CRB RAW INDUSTRIALS SPOT PRICE INDEX

CRB Raw IndustrialsSpot Price Index

China Electricity Output(yearly percent changein 3-month moving average)

Source: Haver Analytics and China National Bureau of Statistics.

yardeni.com

Figure 6.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020-5

0

5

10

15

20

25

200

300

400

500

600

700

12/20

Nov

CHINA: ELECTRICITY OUTPUT vs CRB RAW INDUSTRIALS SPOT PRICE INDEX

CRB Raw IndustrialsSpot Price Index

China Electricity Output(yearly percent changein 12-month moving average)

Source: Haver Analytics and China National Bureau of Statistics.

yardeni.com

Figure 7.

Electricity

Page 4 / December 22, 2019 / Country Briefing: China www.yardeni.com

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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020-2

0

2

4

6

8

10

12

14

16

18

20

-2

0

2

4

6

8

10

12

14

16

18

20

Q3

CHINA: REAL GDP & ELECTRICITY OUTPUT(yearly percent change)

Real GDP (6.0)Power Generated Output(12-ma) (5.7)

Source: Haver Analytics and China National Bureau of Statistics.

yardeni.com

Figure 6.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020-12

-6

0

6

12

18

24

30

36

-12

-6

0

6

12

18

24

30

36

Nov

CHINA: INDUSTRIAL PRODUCTION & ELECTRICITY OUTPUT(yearly percent change in 3-ma)

Industrial Production (5.6)Electricity Output (7.1)

Source: Haver Analytics and China National Bureau of Statistics.

yardeni.com

Figure 7.

Electricity

Page 5 / December 22, 2019 / Country Briefing: China www.yardeni.com

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202090

92

94

96

98

100

102

104

106

108

35

40

45

50

55

60

65

Nov

CHINA: MANUFACTURING PURCHASING MANAGERS INDEX(sa)

M-PMI Composite (50.2)

Leading Index (99.2)

Source: China Federation Logistics & Purchasing and Haver Analytics.

yardeni.com

Figure 8.

2013 2014 2015 2016 2017 2018 2019 202046

48

50

52

54

56

46

48

50

52

54

56

Nov

CHINA OFFICIAL MANUFACTURING PURCHASING MANAGERS’ INDEX& MAJOR COMPONENTS*(sa) Composite (50.2)

New Orders (51.3)Employment (47.3)Output (52.6)

* An index above 50 indicates an increase in activity. An index below 50 indicates a decrease in activity.Source: China Federation of Logistics & Purchasing and Haver Analytics.

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Figure 9.

Manufacturing PMI

Page 6 / December 22, 2019 / Country Briefing: China www.yardeni.com

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Page 9: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

Figure 10.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202035

40

45

50

55

60

65

35

40

45

50

55

60

65

Nov

CHINA: MANUFACTURING PURCHASING MANAGERS INDEX(sa)

PMI Composite (50.2)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202030

40

50

60

70

30

40

50

60

70

Nov

Output (52.6)New Orders (51.3)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202020

30

40

50

60

70

20

30

40

50

60

70

Nov

New Orders (51.3)Export Orders (48.8)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-5

0

5

10

15

-5

0

5

10

15

Nov

New Orders minusExport Orders (2.5)

Source: China Federation Logistics & Purchasing, OECD, and Haver Analytics.

yardeni.com

Manufacturing PMI

Page 7 / December 22, 2019 / Country Briefing: China www.yardeni.com

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Page 10: Country Briefing: China - Yardeni Research · Country Briefing: China Yardeni Research, Inc. September 30, 2019 Dr. Edward Yardeni 516-972-7683 eyardeni@yardeni.com Debbie Johnson

Figure 11.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202030

40

50

60

70

30

40

50

60

70

Nov

CHINA: MANUFACTURING PURCHASING MANAGERS INDEX(sa)

Imports (49.8)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202040

45

50

55

40

45

50

55

Nov

Employment (47.3)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202035

40

45

50

55

60

35

40

45

50

55

60

Nov

Stocks of Orders/Purchases (44.9)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202030

40

50

60

70

30

40

50

60

70

Nov

Quantity ofPurchases (51.0)

Source: China Federation Logistics & Purchasing/Haver Analytics.

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Manufacturing PMI

Page 8 / December 22, 2019 / Country Briefing: China www.yardeni.com

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Figure 12.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202046

48

50

52

54

46

48

50

52

54

Nov

CHINA: MANUFACTURING PURCHASING MANAGERS INDEX(sa)

Suppliers’DeliveryTimes (50.5)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202040

45

50

55

40

45

50

55

Nov

Stock of FinishedGoods (46.4)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202035

40

45

50

55

35

40

45

50

55

Nov

Stock of RawMaterials (47.8)

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202020

30

40

50

60

70

80

20

30

40

50

60

70

80

Nov

Purchase Price (49.0)

Source: China Federation Logistics & Purchasing/Haver Analytics.

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Manufacturing PMI

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2015 2016 2017 2018 2019 202046

48

50

52

54

46

48

50

52

54

Nov

CHINA: MANUFACTURING PURCHASING MANAGERS INDEXES

Final (51.8)

Source: Markit and Haver Analytics.

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Figure 13.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202050

55

60

65

50

55

60

65

Nov

CHINA: NON-MANUFACTURING PURCHASING MANAGERS INDEX(sa)

Source: China Federation Logistics & Purchasing and Haver Analytics

yardeni.com

Figure 14.

Manufacturing & Non-Manufacturing PMIs

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90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200

500

1000

1500

2000

2500

3000

3500

4000

0

500

1000

1500

2000

2500

3000

3500

4000

NovCHINA: RETAIL SALES(billion yuan, nsa)

Source: China National Bureau of Statistics.

yardeni.com

Figure 15.

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-10

0

10

20

30

40

50

-10

0

10

20

30

40

50

Nov

CHINA: RETAIL SALES(yearly percent change)

Total (8.0)

Source: China National Bureau of Statistics.

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Figure 16.

Retail Sales

Page 11 / December 22, 2019 / Country Briefing: China www.yardeni.com

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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

3.6

Nov

CHINA: AUTOMOBILE SALES & PRODUCTION(million units, nsa)

Sales (2.5)Production (2.6)

Source: China Association of Automobile Manufacturers.

yardeni.com

Figure 17.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202017

18

19

20

21

22

23

24

25

26

27

28

29

30

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Nov

CHINA: AUTOMOBILE SALES & PRODUCTION(12-month sum, million units)

Sales (25.8)Production (25.5)

Source: China Association of Automobile Manufacturers.

yardeni.com

Figure 18.

Autos

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-200

0

200

400

600

800

1000

-200

0

200

400

600

800

1000

Nov

CHINA: MERCHANDISE TRADE(billion dollars, saar)

yardeni.com

Source: China Customs and Haver Analytics.

Figure 19.

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200

50

100

150

200

250

300

350

400

450

500

550

600

650

700

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

Nov

CHINA: MERCHANDISE TRADE BALANCE(billion dollars, 12-month sum)

Source: China Customs and Haver Analytics.

yard

eni.c

om

Figure 20.

Trade Balance

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1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-50

0

50

100

-50

0

50

100

Nov

CHINA MERCHANDISE TRADE*(yearly percent change)

Imports (0.7)Exports (-1.4)

* Excluding Hong Kong.Source: China Customs/Haver Analytics.

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Figure 21.

Exports & Imports

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Figure 26.

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20500

900

1300

1700

2100

2500

2900

NovCHINA: MERCHANDISE TRADE*(billion dollars, saar, ratio scale)

TotalImportsExports

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2020

60

100

140

180

220260300340380

NovTelecommunication &Sound RecordingEquipment

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20180

330

480

630

780

930

1080

12301380

NovMachinery &Transport Equipment

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2010.5

30.5

50.5

70.5

90.5

110.5

Nov

Professional & ScientificInstruments & Apparatus

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2060

135

210

285

360

435

510585

Nov

Electrical Machinery,Apparatus, & Appliances

* Excluding Hong Kong. Source: China Customs and Haver Analytics.

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2012

32

52

72

92

112

132

Nov

Iron & Steel

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Exports & Imports

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Figure 27.

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2038

88

138

188

238

288

338

388

438488538588

Nov

CHINA: MERCHANDISE TRADE(billion dollars, saar, ratio scale)

With USExportsImports

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2060

80

100

120

140

160

180

200

220

240

260

Nov

With JapanExportsImports

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200

50

100

150

200

250

300

350

400

450

500

NovWith EUExportsImports

Source: China Customs/Haver Analytics.

05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20200

400

600

800

1000

1200

1400

1600

1800

Nov

With Rest of WorldExportsImports

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Exports & Imports

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 214

6

8

10

12

14

16

18

20

22

24

26

4

6

8

10

12

14

16

18

20

22

24

26

Nov

CHINA: MERCHANDISE EXPORTS(as percent of total exports)

To United States (15.5)To Japan (5.6)To European Union (16.4)

Source: China Customs and Haver Analytics.

yardeni.com

Figure 28.

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2135

40

45

50

55

60

65

35

40

45

50

55

60

65

Nov

CHINA: MERCHANDISE EXPORTS(as percent of total exports)

To Rest of World* (62.4)

* Excludes the US, Japan, and European Union exports.Source: China Customs and Haver Analytics.

yardeni.com

Figure 29.

Export Shares

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2030

35

40

45

50

55

60

65

70

75

80

-40

-30

-20

-10

0

10

20

30

40

50

60

Nov

CHINA: MERCHANDISE EXPORTS TO US & US M-PMI

Chinese Exports to US(yearly percent change in 3-ma)

US M-PMI(50+=expansion, sa)

Source: China Customs and Haver Analytics.

yardeni.com

Figure 30.

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2030

35

40

45

50

55

60

65

70

75

80

85

90

-40

-30

-20

-10

0

10

20

30

40

50

60

70

80

Nov

CHINA: MERCHANDISE EXPORTS TO EU & EU M-PMI

Chinese Exports to EU(yearly percent change in 3-ma)

EU M-PMI(50+=expansion, sa)

Source: China Customs RBS and Markit.

yardeni.com

Figure 31.

Exports to

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-30

-20

-10

0

10

20

30

40

50

-30

-20

-10

0

10

20

30

40

50

Nov

CHINA: MERCHANDISE EXPORTS TO JAPAN(yearly percent change)

Source: China Customs.

yardeni.com

Figure 32.

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-40

-20

0

20

40

60

-40

-20

0

20

40

60

Nov

CHINA: MERCHANDISE EXPORTS TO REST OF WORLD*(yearly percent change in 3-ma)

* Exports excluding US, EU, and Japan.Source: China Customs.

yardeni.com

Figure 33.

Exports to

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200

50

100

150

200

250

300

350

400

0

50

100

150

200

250

300

350

400

Nov

Nov

CHINA: MERCHANDISE TRADE BALANCE BY REGIONS(billion dollars, 12-month sum)

US (301.3)EU (151.4)

yardeni.com

Source: China Customs and Haver Analytics.

Figure 34.

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-200

-100

0

100

200

-200

-100

0

100

200

Nov

Nov

CHINA: MERCHANDISE TRADE BALANCE BY REGIONS(billion dollars, 12-month sum)

With Rest of World (3.9)Japan (-25.7)

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Source: China Customs and Haver Analytics.

Figure 35.

Trade Balance by Regions

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00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 200

25

50

75

100

125

150

175

200

225

250

0

25

50

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125

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225

250

Oct

EXPORTS TO CHINA: US, EUROZONE + UK, JAPAN, SOUTH KOREA, & AUSTRALIA(billion dollars, 12-month sum)

US (105.4)Eurozone + UK (222.7)Japan (134.7)South Korea (135.9)Australia (101.4)

Source: Bureau of the Census and China Customs.

yardeni.comyardeni.com

Figure 36.

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-20

0

20

40

60

-20

0

20

40

60

Oct

EXPORTS TO CHINA: US, EUROZONE + UK, JAPAN, SOUTH KOREA, & AUSTRALIA(yearly percent change)

Source: Bureau of the Census and China Customs.

yardeni.com

Figure 37.

Exports to China

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20201.0

1.5

2.0

2.5

3.0

3.5

4.0

1.0

1.5

2.0

2.5

3.0

3.5

4.0

NovCHINA: RAILWAYS FREIGHT TRAFFIC(100 million tons)

Source: China National Bureau of Statistics.

yardeni.com

Figure 38.

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022.0

.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

.0

.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Nov

CHINA: RAILWAYS PASSENGER TRAFFIC(100 million persons)

12-Month Moving AverageActual

Source: China National Bureau of Statistics.

yardeni.com

Figure 39.

Railways Traffic

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-10

-8

-6

-4

-2

0

2

4

6

8

10

12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

Nov

Nov

CHINA: CPI & PPI(yearly percent change)

CPI (4.5)PPI: TotalIndustrial Products (-1.4)

Source: China National Bureau of Statistics.

yardeni.com

Figure 40.

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-15

-12

-9

-6

-3

0

3

6

9

12

15

18

-15

-12

-9

-6

-3

0

3

6

9

12

15

18

Nov

CHINA: RAW MATERIALS & MANUFACTURING PPI(yearly percent change)

Raw Materials (-5.0)Manufacturing (-1.6)

yardeni.com

Source: China National Bureau of Statistics.

Figure 41.

Producer Price Index

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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-16

-12

-8

-4

0

4

8

12

16

-16

-12

-8

-4

0

4

8

12

16

Mar

CHINA: LIGHT & HEAVY INDUSTRY PPI(yearly percent change)

Heavy Industry (-5.7)Light Industry (-0.9)

yardeni.com

Source: China National Bureau of Statistics.

Figure 42.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-50

-25

0

25

50

75

100

-50

-25

0

25

50

75

100

Nov

CHINA: RAW MATERIALS PPI(yearly percent change)

Chemical (0.3)Coal (-2.8)Ferrous Metals (8.3)Nonferrous Metals (3.2)

yardeni.com

Source: China National Bureau of Statistics.

Figure 43.

Producer Price Index

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98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-10

-8

-6

-4

-2

0

2

4

6

-10

-8

-6

-4

-2

0

2

4

6

Nov

CHINA PPI: CONSUMER GOODS(yearly percent change)

Durable Goods (-2.1)Daily-Use Articles (0.1)

yardeni.com

Source: China National Bureau of Statistics.

Figure 44.

Producer Price Index

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Figure 45.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-4

-2

0

2

4

6

8

10

-4

-2

0

2

4

6

8

10

Nov

CHINA: CONSUMER PRICE INDEX

Total (4.5)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-3

-2

-1

0

1

2

3

4

-3

-2

-1

0

1

2

3

4

Nov

Excluding Food (1.0)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-4

-2

0

2

4

6

8

10

12

-4

-2

0

2

4

6

8

10

12

NovConsumer Goods (6.5)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-2

-1

0

1

2

3

4

5

-2

-1

0

1

2

3

4

5

NovServices (1.2)

Source: Haver Analytics.

yardeni.com

Consumer Price Index

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Figure 46.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-20

-10

0

10

20

30

40

Nov

CHINA: CONSUMER PRICE INDEX(yearly percent change)

Fuel & Power (-5.8)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-2

0

2

4

6

8

10

Nov

Medicine, Medical Care &Personal Articles (2.0)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-4

-2

0

2

4

6

NovClothing (1.1)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-8

-6

-4

-2

0

2

4

Nov

Transportation &Communication (-2.8)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-10

-5

0

5

10

15

Nov

Housing (0.4)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-6

-4

-2

0

2

4

6

8

10

12

Nov

Recreation, Education &Cultural Services (1.7)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-5

0

5

10

Nov

Household Facilities,Articles & RepairServices (0.4)

Source: Haver Analytics.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-2

0

2

4

6

DecTobacco &Liquor Products (3.9)

yardeni.com

Consumer Price Index

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Figure 47.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-10

0

10

20

30

40

Nov

CHINA: CONSUMER PRICE INDEX(yearly percent change)

Food (19.1)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-30

-20

-10

0

10

20

30

40

50

60

Nov

Fresh Vegetables (3.9)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-20

0

20

40

60

80Nov

Meat, Poultry &RelatedProducts (74.5)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-30

-20

-10

0

10

20

30

40

50

60

Nov

Fresh Fruits (-6.8)

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-20

0

20

40

60

Nov

Grain (0.7)

Source: Haver Analytics.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-30

-20

-10

0

10

20

30

40

50

Nov

Eggs (10.1)

yardeni.com

Consumer Price Index

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98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-4

-2

0

2

4

6

8

10

-4

-2

0

2

4

6

8

10

Nov

CONSUMER PRICE INDEX(yearly percent change)

US (2.0)China (4.5)

Source: Bureau of Labor Statistics and China National Bureau of Statistics.

yardeni.com

Figure 48.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-6

-4

-2

0

2

4

6

8

10

12

14

16

18

20

22

24

26

-6

-4

-2

0

2

4

6

8

10

12

14

16

18

20

22

24

26

Nov

CONSUMER PRICE INDEX: FOOD(yearly percent change)

China: Food (19.1)US: Food at Home (1.0)

Source: Bureau of Labor Statistics and China National Bureau of Statistics.

yardeni.com

Figure 49.

China vs. US Inflation

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-4

-2

0

2

4

6

-4

-2

0

2

4

6

Nov

CONSUMER PRICE INDEX EX FOOD(yearly percent change)

US (2.1)China (1.0)

Source: Bureau of Labor Statistics and China National Bureau of Statistics.

yardeni.com

Figure 50.

98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-10

-8

-6

-4

-2

0

2

4

6

8

10

12

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

Nov

PRODUCER PRICE INDEXES(yearly percent change)

US: Finished Goods (1.1)China: Total Industrial Products (-1.4)

Source: Bureau of Labor Statistics and China National Bureau of Statistics.

yardeni.com

Figure 51.

China vs. US Inflation

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

6000

6500

12/20

CHINA: SHANGHAI-SHENZHEN 300(12/31/2004=1000)

Source: Haver Analytics.200-day moving average.

yardeni.com

Figure 52.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202020

40

60

80

100

120

20

40

60

80

100

120

12/20

CHINA: MSCI SHARE PRICE INDEX(yuan, December 31, 1992=100)

200-day moving average.Source: Morgan Stanley Capital International.

yardeni.com

Figure 53.

Stock Market

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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020400

600

800

1000

1200

30

40

50

60

70

80

90

100

110

120

12/20

12/20

CHINA: STOCK MARKET & CRB METALS

MSCI Share Price Index(Yuan, December 31, 1992=100)

CRB Metals(1967=100)

Source: Morgan Stanley Capital International, Commodity Research Bureau, and Haver Analytics.

yardeni.com

Figure 54.

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020100

200

300

400

500

30

40

50

60

70

80

90

100

110

120

12/20

12/20

CHINA: STOCK MARKET & COPPER PRICE

MSCI Share Price Index(yuan, December 31, 1992=100)

Copper Price*(cents per pound)

* Nearby futures contract.Source: Morgan Stanley Capital International and Haver Analytics.

yardeni.com

Figure 55.

Stock Market

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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-4

0

4

8

12

16

20

24

28

32

36

40

-4

0

4

8

12

16

20

24

28

32

36

40

NovNov

CHINA: M1 & CPI(yearly percent change)

Consumer Price Index (4.5)M1*(pushed ahead 12 months) (3.5)

* In yuan.Source: China National Bureau of Statistics.

yardeni.com

Figure 56.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-4

0

4

8

12

16

20

24

28

32

36

40

-4

0

4

8

12

16

20

24

28

32

36

40

Nov

Nov

CHINA: M2 & CPI(yearly percent change)

Consumer Price Index (4.5)M2*(pushed ahead 12 months) (8.2)

* In yuan.Source: China National Bureau of Statistics.

yardeni.com

Figure 57.

Money Growth & Inflation

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-.5

.0

.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

-.5

.0

.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Nov

CHINA: TOTAL SOCIAL FINANCING(trillion yuan)

Source: Peoples Bank of China.

yardeni.com

Figure 58.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-200

0

200

400

600

800

-200

0

200

400

600

800

Nov

CHINA: TOTAL SOCIAL FINANCING(billion US dollars)

Source: Peoples Bank of China.

yardeni.com

Figure 59.

Social Finance

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0

5

10

15

20

25

0

5

10

15

20

25Nov

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

1

2

3

4

0

1

2

3

4

Nov

CHINA SOCIAL FINANCING(trillion yuan, 12-month sum)

(trillion US dollars, 12-month sum)

Total in Yuan (22.9)

Total In US Dollars (3.3)

Source: Peoples Bank of China/Haver Analytics.

yardeni.com

Figure 60.

0

5

10

15

20

0

5

10

15

20

Nov

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020.0

.4

.8

1.2

1.6

2.0

2.4

2.8

.0

.4

.8

1.2

1.6

2.0

2.4

2.8

Nov

CHINA: BANK LOANS(trillion yuan, 12-month sum)

(trillion US dollars, 12-month sum)

Bank Loansin Yuan (16.7)

Bank Loansin US Dollars (2.4)

Source: People’s Bank of China.

yardeni.com

Figure 61.

Social Finance

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-1000

0

1000

2000

3000

4000

-1000

0

1000

2000

3000

4000

Nov

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-100

0

100

200

300

400

500

-100

0

100

200

300

400

500

Nov

CHINA: COMMERCIAL BANK LOANS(monthly change in billions)

in yuan (1388.0)

in dollars (197.8)

Source: People’s Bank of China.

yardeni.com

Figure 62.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-250

0

250

500

750

1000

1250

1500

1750

2000

-250

0

250

500

750

1000

1250

1500

1750

2000

Nov

CHINA(monthly change in 3-month average, billion yuan)

Bank Loans

Source: Haver Analytics.

yardeni.com

Figure 63.

Bank Loans

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85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 225

6

7

8

9

10

11

12

13

14

15

16

17

18

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20

21

22

5

6

7

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9

10

11

12

13

14

15

16

17

18

19

20

21

22

12/20

CHINA REQUIRED RESERVE RATIOS*(percent)

Required Reserve RatiosLarge Depository Institutions (13.0)Small/Medium Depository Institutions (11.0)

* The PBOC announced a change in the Required Reserve Ratios in two steps and specified that it would drop 0.5% effective January 15, 2019 and todrop another 0.5% effective January 25, 2019. The rates were updated accordingly into the future.Source: People’s Bank of China.

yardeni.com

Figure 64.

74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 222

4

6

8

10

12

14

2

4

6

8

10

12

14

Nov

CHINA: PRIME LENDING RATE(percent)

Source: Haver Analytics.

yardeni.com

Figure 65.

Monetary Policy

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020.1

.6

1.1

1.6

2.1

2.63.13.64.14.65.15.66.1

.1

.6

1.1

1.6

2.1

2.63.13.64.14.65.15.66.1

NovPBOC ASSETS(trillion dollars, nsa, ratio scale)

Total Assets (5.2)Foreign Exchange Assets (3.0)Nongold International ReservesHeld by China (IMF data) (3.1)

Source: People’s Bank of China and IMF.

yardeni.com

Figure 66.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 202035

40

45

50

55

60

65

70

75

80

85

35

40

45

50

55

60

65

70

75

80

85

Nov

PBOC ASSETS(percent)

Foreign Exchange Held/Total PBOC Assets

Source: People’s Bank of China and IMF.

yardeni.com

Figure 67.

PBOC Balance Sheet

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 208.6

8.4

8.2

8.0

7.8

7.6

7.4

7.2

7.0

6.8

6.6

6.4

6.2

6.0

5.8

8.6

8.4

8.2

8.0

7.8

7.6

7.4

7.2

7.0

6.8

6.6

6.4

6.2

6.0

5.8

12/20

CHINA: FOREIGN EXCHANGE RATE(yuan/$)

Source: Morgan Stanley Capital International.

yardeni.com

Figure 68.

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 2010

210

410

610

8101010121014101610

10

210

410

610

8101010121014101610

OctMAJOR FOREIGN HOLDERS OF US TREASURY SECURITIES(billion dollars, nsa, ratio scale)

China + Hong KongChinaHong Kong

Source: US Department of the Treasury, Office of International Affairs.

yardeni.com

Figure 69.

Exchange Rate

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2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 20200

500

1000

1500

2000

2500

3000

3500

4000

4500

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Nov

Oct

CHINA: INTERNATIONAL RESERVES(billion dollars, nsa)

Non-Gold International Reserves (IMF)Holdings of US Treasury Securities*

Source: US Department of the Treasury, Office of International Affairs and International Monetary Fund.* Includes private and official accounts.

yardeni.com

Figure 70.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020-650

-550

-450

-350

-250

-150

-50

50

150

250

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Nov

CHINA: INTERNATIONAL RESERVES(billion dollars, yearly change)

Non-Gold International Reserves (IMF)Holdings of US Treasury Securities*

Source: US Department of the Treasury, Office of International Affairs and International Monetary Fund.* Includes private and official accounts.

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Figure 71.

International Reserves

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97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-700

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CHINA: MERCHANDISE TRADE & NON-GOLD INTERNATIONAL RESERVES(billion dollars)

Merchandise Trade Surplus or Deficit(12-month sum)Non-Gold International Reserves(12-month change)

Source: China Customs and Haver Analytics.

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Figure 72.

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-1300

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CHINA: IMPLIED INTERNATIONAL CAPITAL FLOWS*(billion dollars)

* 12-month change in non-gold international reserves minus 12-month sum of the merchandise trade surplus (deficit).Source: China Customs and Haver Analytics.

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Figure 73.

International Reserves

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Figure 74.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 20200

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BANK LOANS(trillion US dollars)

ChinaUS

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2

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4

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6

0

1

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3

4

5

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CENTRAL BANK ACCOUNTS(trillion US dollars)

China’s Total AssetsUS Fed’s Total Assets

Source: Board of Governors of the Federal Reserve and People’s Bank of China.

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China vs. US Monetary Indicators

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Figure 75.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 20200

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CHINA: BANK LOANS(as a percent of US Bank Loans)

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TOTAL ASSETS OF PEOPLE’S BANK OF CHINA(as a percent of US Fed’s Total Assets)

Source: Board of Governors of the Federal Reserve and People’s Bank of China.

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China vs. US Monetary Indicators

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98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-10

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0

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25

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Nov

Nov

CHINA: INDUSTRIAL PRODUCTION & PRODUCER PRICE INDEX(yearly percent change)

Industrial Production* (6.3)PPI: TotalIndustrial Products (-1.4)

* Value added basis.Source: IMF International Financial Statistics and China National Bureau of Statistics.

yardeni.com

Figure 76.

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20-10

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CHINA: RETAIL SALES(yearly percent change)

Total (8.0)

Source: China National Bureau of Statistics.

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Figure 77.

Industrial Production & Retail Sales

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022700

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CHINA: RAILWAYS FREIGHT TRAFFIC & IMPORTS PLUS EXPORTS

Railways Freight Traffic(100 million tons)

Imports Plus Exports(billion dollars, saar)

Source: China National Bureau of Statistics, China Customs, and Haver Analytics.

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Figure 78.

Railway Freight Traffic

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20220

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BANK LOANS: CHINA & US(trillion US dollars)

China (nsa) (21.7)US (sa) (10.0)

Source: People’s Bank of China.

yardeni.com

Figure 79.

2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 20200

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CHINA: BANK LOANS(as a percent of US Bank Loans)

Source: People’s Bank of China.

yardeni.com

Figure 80.

Bank Loans

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