Asian markets bounced on China industrial production figures. Apparently China’s factory output rose 19.2% in November vs. 18.2% consensus. Exports are running at -1.2% yoy, imports at +26.7% yoy.

CPI at 0.6%  yoy in November vs. -0.5% yoy in October. PPI rebounded from -5.8% in October to -2.1% in November YoY.

New loans at Rmb295bn due to a smaller contraction in short-term loans and discount bills. Medium and long-term loans increased by only Rmb364bn, the lowest so far this year. New medium- and long-term loans to enterprises were just Rmb163bn, vs. Rmb457bn a month for first 10 months of 2009 and Rmb273bn in October.

In short, China has returned to pre-crisis growth rates on massive government stimulus and monetary expansion which is now tapering off.

Chart 1. China Industrial Production Growth YoY

Source: Bloomberg

Chart 2. China Money Supply

Source: Bloobmerg