China's industrial profits surge in October

Q4 GDP should now grow 7.5-8.0%, says BBVA.

Industrial profits rose by 20.5% y/y in October from 7.7% y/y the previous month, and industrial sales increased 11.1% y/y from 10.2% y/y according to data released by the National Bureau of Statistics.

According to BBVA, the outturn is the result of favorable base effects, low input prices and, most importantly, a pickup in economic activity. 

"The data provide further evidence that the economic slowdown has bottomed out, and we expect GDP growth to accelerate to between 7.5%-8.0% in Q4 (from 7.4% y/y in Q3) The RMB strengthened again today, reaching 6.22/USD, and hit the strong end of the daily trading band; the RMB has now increased by 2.6% since its low point in July, and is up by 1.2% against the USD for the year," said BBVA.