China Growing 9.5% Evident as New Vehicle Sales Soar (Update1)

By Bloomberg News

Sept. 9 (Bloomberg) -- Look no further than Alcoa Inc. and General Motors Co. for evidence that the Chinese economy is poised to accelerate even after a slump in lending growth dragged down the nation’s stock market.

Alcoa, the largest U.S. aluminum producer, is raising its forecast for global consumption of the metal on stronger demand from China. GM, the biggest overseas automaker in China, says the nation’s vehicle sales may reach 12 million, surpassing the U.S. as the world’s No. 1 market.

The benchmark Shanghai Composite Index entered a bear market, or a decline of at least 20 percent, Aug. 31 on concern a slide in new loans in July might slow production and investment. Figures for August may allay the fears: Industrial output rose the most in a year and retail sales climbed at a 15 percent annual pace, median forecasts in Bloomberg News surveys show.

“Credit tightening isn’t going to crash the economy,â€