China Economic Analysis Report, No 49, April 2013

The core index of the macro-economy rose from the previous month, and pessimistic expectations in the market have become less strong in the short term.

The international economy has remained weak in recovery and stable in general. But as low interest rates prevail, financial products' high valuation risk and capital flow impact have increased.

PPI continued to go down in April with the negative growth rate increasing, aggravating the insufficient refilling of company inventory. If PPI can't pick up momentum in the short term, companies will further de-stock and reduce raw material purchases, which will challenge the stability of industrial production and the low capacity utilization rate.