China reported its industrial production growth was the slowest in a year and a half in November 2004 in the wake of government orders to banks to restrict lending for industries including steel and cars.

The National Bureau of Statistics said production rose 14.8 per cent from a year earlier to 508 billion yuan ($61 billion) after surging 15.7 per cent in October.
Manufacturers including Bayerische Motoren Werke AG are curbing production in China as credit restrictions damp demand and costs of raw materials rise. Stocks rose as the report eased concern policymakers will raise interest rates or tighten investment limits, causing a sharper slowdown in an economy that’s the world’s biggest consumer of steel, copper and cement, according to a Bloomberg report.
It quoted Joseph Lau, an economist at Credit Suisse First Boston in Hong Kong, who predicted slower production growth, as saying, “Growth is beginning to normalise a little. We don’t expect to see any more tightening measures at least for another two to three months.”
Another government report showed China’s exports grew 46 per cent from a year earlier in November to $60.9 billion, the fastest pace in five months, as overseas demand rose for Chinese-made clothes, toys and electronic components.
Imports climbed 39 per cent to $51 billion, leaving a trade surplus of $9.9 billion.
Beijing imposed lending restrictions to curb frantic investments that led to transport bottlenecks, power shortages and inflation.
Bloomberg quoted Tai Hui, an economist at Standard Chartered in Hong Kong as saying exports were providing growth support for the economy and that even if investment slowed down over the next six to 12 months there would still be some growth drivers to pick up the slack.