Losses at China First Heavy Industries, a national champion state-owned enterprise based in Qiqihar, ballooned 74 percent to 667 million yuan in the first half. “As China’s economy has slowed, its leaders have become more aware of the problems associated with over-investment and overcapacity and have tried to slow the flow of investment,” said Mark Williams, chief Asia economist at Capital Economics in London.
Beijing will likely stick to mini-stimulus: RBS
While recent data point to a subdued economy in China, policymakers remain reluctant to roll out large-scale stimulus, says Louis Kuijs, Chief Economist, Greater China at RBS.
Rail cargo gauge And for those economists who track rail cargo volumes as a reliable gauge of China’s economic health – along with bank lending and power generation – Qiqihar, a city of close to 6 million people, may offer some early warning signals. Qiqihar Railway Rolling Stock, a subsidiary of state-owned China CNR Corp , has had no new orders for its freight cars for a couple of months, a company official said, forcing it to idle its plants and leave up to 10,000 workers on subsistence wages. Read More China banking crisis? Here’s what it might look like That could be cause for concern in Beijing where the government reckons China needs the economy to be humming along at least at 7.2 percent to keep employment steady – and ensure social stability. Growth in Heilongjiang may have already slowed to below a tacit threshold set by the central government. In August, Beijing announced renewed measures to boost the economies of its three northeastern provinces, with state-owned enterprises already expected to invest an estimated $164 billion in neighboring Liaoning province.
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