Data released today shows that China’s coal-derived electricity generation not surprisingly set another new record in August, but this has not received much widespread attention.  China’s total electricity production also set a record, but this also has not received much widespread attention.  Overall, several pockets of China’s economy continue to show significant improvement and strength.

Coal-derived electricity generation totaled 598.9 billion kilowatt hours in August.  This is up month-on-month by 42.9 billion kilowatt hours (8%) and is up year-on-year by 82.2 billion kilowatt hours (16%).  The 16% year-on-year growth is impressive and marks the first time since October that China’s coal-derived electricity generation growth has fared better than domestic coal production growth.  China’s coal production last month totaled 370.4 MMT.  This is down month-on-month by 2.3 MMT (-1%) but is up year-on-year by 35.2 MMT (11%).  

Overall, we remain of our view that it is becoming easier to be more bullish for the Chinese economy.