Numbers of the Week

0.36%

China's total power consumption in the first eight months rose 0.36 percent to 2.34 trillion kwh from the same period last year, said the China Electricity Council.

410.4 billion

China's new renminbi-denominated loans in August were 410.4 billion yuan ($60.02 billion), said the People's Bank of China.

TO THE POINT: The Chinese economy regains a solid footing as evidenced in August figures, though exports fail to deliver a needed turnaround. As one of the major driving forces, investments continued to pick up steam. When the stock and real estate markets become increasingly volatile, the gold market gains a chance to shine as a safe haven. Automakers are experiencing skyrocketing sales, but a few risks put their long-term prospects at stake. Chinese PC makers make a push into rural markets to gain an edge over foreign competitors.

By HU YUE

August Afloat

The Chinese economy is steering a steady course through the global financial storm. While developed countries struggle, a U-shaped growth trajectory is taking shape in the world's third largest economy.

Invariably, what has kept the growth engine humming was strong investment, but consumption also provided additional relief. According to the latest data from the National Bureau of Statistics (NBS), the urban investments in fixed assets from January to August grew a robust 33 percent year on year, and August retail sales edged up 15.4 percent.

The trade front saw a weakness in exports, and imports continued to cast a shadow on the recovery. August exports fell 23.4 percent from a year earlier, but gained 3.4 percent over July.

"Overall, a clearer picture has revealed that the economy is finding its feet," Li Xiaochao, spokesman of the NBS, said at a news briefing.

Zhang Liqun, a senior economist with the Development Research Center under the State Council, believes the entrenched gloom is losing ground to rising optimism. "As the August data suggested, the pick-up in domestic demands is effectively compensating for the exports," he told Xinhua News Agency.

Despite brewing worries over negative effects, like asset bubbles and inflation, analysts do not expect the policymakers to put a brake on the monetary and fiscal mechanism as uncertainties linger.

Inflation is still some way off since the consumer price index remains in negative territory, added Zhang.

Economic Performance

CPI and PPI

The consumer price index (CPI), a major gauge of inflation, dipped 1.2 percent in August from a year earlier, 0.6-percentage point lower than that in July, according to the NBS.

The producer price index (PPI), a measure of inflation on the wholesale level, in August fell 7.9 percent year on year, 0.3-percentage point lower than that in July.

FDI

China received $7.5 billion of foreign direct investment in August, up 7 percent from a year earlier, marking the first time this year that the figure has risen year on year, said the Ministry of Commerce.

Fiscal Revenue

China's fiscal revenue in August rose 36.1 percent over the same month last year to reach 523.75 billion yuan ($76.68 billion), the fourth month in a row to record increases, according to the Ministry of Finance.

Retail Sales

Retail sales grew 15.4 percent in August to 1.01 trillion yuan ($148.1 billion) year on year, the NBS said.

Industrial Output

China's industrial output increased 12.3 percent in August from a year earlier, after growing 10.8 percent in July, said the NBS.