China's Economy Should See 'Soft-Landing'; Supportive For Base Metals

China's Economy Should See 'Soft-Landing'; Supportive For Base Metals – Scotiabank

- an article from PDAC 2012, Prospectors & Developers Association of Canada's annual convention, one of the bigger convention of mining industry which will end today, Wed.
- China represents 42% of global demand for the four main base metals: copper, zinc, nickel and aluminum...which is a great number for a single country.
- Demand of metals in China has a great potential to grow based on new adjustments in political and social plan in China:
>China's plan to build more housing for lower-income citizens will offset the decline in private sector housing.
>a top Chinese banking regulator said recently that municipal governments, which have seen mounting debts, can roll over bank loans as long as projects are 60% complete. She said when that announcement came out, copper prices rose sharply, which underscores the importance the Asian nation has to the red metal.
>China's National Development Reform Commission said government-led infrastructure projects will rise 15%-20% in 2012
few trends:
- The recent trend of rising auto sales
- governments are seeking more revenue from resources and inflation.


how long would this trend sustain? as long as China keeps growing?

Thanks
Lawrence