Growth data shows mixed picture

The mainland economy turned the corner in the last quarter by growing faster than expected after seven straight quarters of slowdown, but economists fear weaker investment growth may limit the room for further gains.

The mixed picture may keep market sentiment cautious till policy direction becomes clearer after the annual legislative session in March when Li Keqiang officially takes over from Wen Jiabao in running the economy.

Gross domestic product growth rebounded to 7.9 per cent in the last quarter of 2012, beating market expectations for a 7.8 per cent gain and more than the 7.4 per cent growth in the third quarter. For the full year, the economy grew 7.8 per cent, after 9.3 per cent growth in 2011.

Industrial production and retail sales accelerated in December by 10.3 per cent and 15.2 per cent year on year, compared with 10.1 per cent and 14.9 per cent respectively in November.

Yesterday's data saw the Shanghai stock market close 1.4 per cent higher at 2,317.07 points.

However, fixed-asset investment, a major driver behind a recent uptick in economic momentum, grew at a slower pace.