A latest report of CITIC Securities showed Chinese industrial growth in October fell below expectations and the downtrend is likely to extend in the near future. The official data on Wednesday showed Chinese value-added industrial output expanded 5.6 percent year on year in October, slightly down from 5.7 percent in September.
October saw the power generation maintain a negative growth and the January-October generation showed the first negative growth of this year.
State-owned enterprises maintained negative growth, while collective enterprises turned from positive to negative growth. Joint-equity enterprises have become the main force behind the industrial growth, further proving the reasonability of mixed-ownership reform among state-owned enterprises, the CITIC report said.
The incentive policies on new energy cars prompted a significant growth in the automobile industry, while the performance of railway, ship, aerospace and other transportation equipment declined markedly, the report underlined.
Economic growth in the eastern regions rebounded marginally, while that in the northeast showed a "bluff" drop, the report said. As mixed-ownership reform has not come to a wide expansion and the elimination of zombie companies could lead to an output decline, while there is not yet an explicit scheme to tackle the northeast problem, it is expected the industrial growth would maintain a downtrend in the near future, the CITIC report said.
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