China growth picks up in third quarter

CHINA saw its rate of annual GDP growth pick up in the third quarter as a combination of breakneck investment and buoyant bank lending compensated for a slump in exports.<br /><br />Growth accelerated to 8.9 per cent in the third quarter, from 7.9 per cent last quarter. The figures came a day after the government said recovery in the world&rsquo;s third-largest economy had now been &ldquo;consolidated&rdquo;.<br /><br />CLSA China Macro-Strategist Andy Rothman said growth was strong, but added a policy tightening was unlikely until the second half of 2010. <br /><br />He said: &ldquo;China has begun, however, to implement its &lsquo;exit strategy&rsquo;, which is a gradual reduction in the level of stimulus (credit and infrastructure spending) in response to rising private investment and consumption.&rdquo;