Home > china, economy > Hopes of Quick Rebound in China Start to Fade

Hopes of Quick Rebound in China Start to Fade

Hopes for an early recovery in China’s economy are starting to unravel, undercutting the optimism that has helped to make the country’s stock market the world’s best performer this year.

In recent weeks, some companies and investors had seized on a surge in bank lending and an upturn in steel prices — a key indicator in China’s industry-heavy economy — as signs that a massive government stimulus program was already taking hold.

But now steel prices are falling again, and closer examination of the recent bank data suggests that many of the loans won’t immediately fuel economic growth. Meanwhile, trade has continued to contract, as demand for Chinese exports from the U.S. and Europe wanes, and Chinese companies and consumers, in turn, buy fewer foreign goods.

This article was originally posted on The Wall Street Journal. Click here to continue reading the complete article.

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