**MNI: 5 Things We Learned From China GDP Data

     **BEIJING (MNI) - The following are the key points from the China Q4 GDP

data released by the National Bureau of Statistics Thursday:

     --China's economy came in stronger than expected in the fourth quarter of

2017, with real GDP rising an annualised 6.8% y/y. The annual GDP growth in 2017

was 6.9%, the same as Premier Li Keqiang had indicated last week, underlining

that economic condition in China remain stable.

     --Retail sales grew 9.4% m/m in December, much lower than the market

expectation of a 10.2% gain seen in the MNI survey, but in line with the weak

import data. There is a need to see further evidence as to whether this is a

sign of weakening domestic demand. That said, it is an ominous warning sign,

suggesting an increase in downward economic pressure.

     --Industrial output grew 6.2% in December, compared with the MNI survey

median of 6.0% and the 6.1% recorded in November. This comes as no surprise as

MNI noted in its '5 things to look for' preview that industrial output tends to

pick up in end-month of a quarter, although December has seen a lower

outperformance than those recorded in March, June and September. More evidence

is therefore needed before concluding that industrial output is on a bounce-back

path.   

     --The annual infrastructure investment growth rate is 19%, compared than

20.1% during the period from January to November this year, and 17.4% in 2016.

Infrastructure investment remains strong, remaining an important pillar to

support China economic growth.

     --Real estate investment grew 7.0% y/y in 2017, compared with 6.9% in 2016

and 7.5% during the period from January to November. Real estate investment

growth has been trending down since April, showing the government's policies to

curb the real estate sector has worked. It remains to be seen whether the

government will relax its controls on the real estate market marginally in 2018,

with some signs now pointing to this direction.

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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