Mainland power output surged last month, a sign of economic expansion many observers say is a more reliable indicator of revival than the big increase reported yesterday in gross domestic product.
The 25.9 per cent year-on-year jump in electricity generation - the strongest growth in a non-holiday month in 12 years - indicates Beijing's 4 trillion yuan (HK$4.54 trillion) stimulus programme has lifted the mainland from the trough of the global downturn.
More than 70 per cent of the electricity the mainland generates is used by industry, primarily in the steel, cement, aluminium and other heavy industrial sectors.
The National Bureau of Statistics unveiled fourth-quarter GDP growth of 10.7 per cent and December consumer price inflation of 1.9 per cent - both slightly higher than expected.
The figures, coupled with sharp gains in housing prices last year and runaway bank lending this month, stoked fears that the economy may be overheating. Many economists predict interest rates will be increased earlier than expected to pre-empt a full-blown asset bubble.
With gross domestic output of 33.5 trillion yuan last year, China will surpass Japan as the world's second-largest economy this year, analysts believe. Nevertheless, it still lags far behind Japan in total consumption and economic output per capita.
