A series of Chinese data released over the weekend present a mixed picture of the health of the world's second-largest economy, though generally the outcomes were stronger than many market players had feared at the end of last week following a surprise interest rate cut by the central bank; the data also keep alive the prospect of further monetary loosening steps from Beijing. The data showed China's exports and imports rose sharply in May, while inflation slowed sharply; plus, industrial production growth ticked up slightly from the slowest rate of growth in nearly three years in April. "The combination of falling inflation and weak industrial data will provide more room for the authorities to loosen policy," says Goldman Sachs economist Yu Song; "there will remain room for the People's Bank of China to further cut the (bank) required reserve ratio and interest rates."
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