CHENGDU, Nov. 29 (NBD) -- By analyzing the amount of rail freight, power consumptions, and other economic indicators, Zhou Jingtong, an employee in the Institute of International Finance of Bank of China, assured that China’s economy continues improving in October.

Since August 2016, the amount of rail freight has been increasing. According to the research reports of Sinolink Securities, the recovery of rail shipping is primarily due to the increased amount of coal and steel. In the second half of 2016, Chinese government imposed production restrictions on coals, which urges vendors to replenish their inventories. In addition, the fourth quarter is the winter of China, the ferocious demand for heating also drives up coal shipping. 

Besides coal shipment, other indicators such as PMI and PPI also help confirmed that China’s economy is stable and improving. Then where are we in the L-shaped economy and how far to the bottom? Former vice director of the Development Research Center of the State Council Liu Shijin and many other economists suggest that we are near the bottom and the coming one or two years are critical period to touch the bottom. “However, we cannot be over-optimistic”, says Zhou Jingtong. The recovery of economy in recent months is primarily due to the investment on real estate and infrastructure. It’s hard to say whether they will continue to fuel China’s economy in the coming years. In the context of reverse globalization, which direction will China’s economy head is still uncertain.

Hononary dean of Guanghua School of Management of Peking University， Li Yining says, “The increased amount of coal is a normal phenomenon to replenish inventory, but that does not necessarily mean the downward pressure is easing. Economic transformation still has a long way to go. ”