The quarterly survey of thousands of Chinese firms by China Beige Book International (CBB) showed "old economy" firms in the commodities sector sustained an increase in net capacity and production. Overall, wages and hiring ebbed in the December quarter, with the retail sector suffering the biggest blow on weak revenue, a hiring slowdown and worsening cash flow. "If you expect a noticeable slowdown in 2018, the first post-Congress returns support those expectations," CBB said of its fourth quarter findings. The fourth quarter survey again showed little evidence of supply-side reform, with industrial commodity firms adding net capacity and ramping up production, as well as boosting their payrolls. Commodity firms added net capacity for the last seven quarters, according to the CBB survey, in line with official data showing rising output in many sectors.

Source: New Strait Times December 26, 2017 23:03 UTC