DEBT FINANCING. Imports of commodities shows China's economy resilient

SHANGHAI (Reuters)-key imports of goods from China, including oil, copper and iron ore, all rose in August from the previous month, adding to evidence that the demand in the world's second largest economy was still going strong, despite the economic turmoil in the West.
The wave of purchases of industrial raw materials and oil suggests that Chinese companies are still confident about the domestic economy and that they probably would see any price corrections as a rare opportunity to restocking-a move that should offer strong support to commodity prices.
With inflation of China have pulled back in August from a high of three years, market observers also expect the central bank to postpone the new strengthening measures, which could in turn relieve the credit crunch and potentially draw producers and traders to import more raw materials.
China imported 21.04 million tonnes of crude oil in August, up 1.8% of 20.66 million in the previous month, according to Reuters calculations using the numbers from July to the magazine.
Although oil demand implicit in August fell to the lowest rate for this year, plant maintenance and accidents were the main reasons behind the dip and traders generally expect that seeks to improve from September.
"August-arrival gross loads were loaded mainly in June and July, when oil prices fluctuated greatly," said a trader from crude oil.
Data of the General Administration of Customs also showed the iron ore imports from China in August jumped 33 percent a year ago to a high of five months of 59.09 million tonnes, thanks to the production of robust steel industry.
However, analysts have warned that steel production would decelerate in the coming months amid a slowdown in seasonal demand.
Despite slowing export growth due to the economic malaise in the United States and in Europe, China's economy continued to grow at an enviable rate of more than 9%, thanks in part to the construction of the Government of more than 10 million homes as well as feverish investment in Western provinces and lagging middle.
These two factors led Chinese factories to produce near a quantity record for steel, cement plants to ramp up production and metal foundries to expand capacity-strengthening the country's voracious appetite for a number of commodities.
COPPER DEMAND FOR THIRD MONTH
Imports of unwrought copper to China, the world's no. 1 metal, published monthly a third gain of 11.0%-the highest since March-to 340,398 tonnes in August, as buyers took advantage of lower prices abroad.
Compared to the previous year, however, copper imports remain below 10.3 per cent, with shipments of year-to-date down to 20.5%.
Fu Bin Jinrui Futures analyst, said that China had maintained by purchasing special copper in recent weeks as arbitration continued to surface, a trend which will support import figures for September and October.
Imports of unwrought aluminium had smaller monthly earnings of 0.8 per cent, but decreased by 2.3% year ago.
Soy was the only laggard of all commodities, falling 15.7% compared to the previous month to 4.5 million tonnes as high prices abroad led Crushers rotate national deliveries.
In the midst of economic doom and gloom in the eurozone and United States, investors have wondered whether China, one of the main buyers, would be able to avoid a hard landing.
However, a series of economic data released in recent months has suggested that domestic demand was holding up relatively well, although the global economic growth has facilitated.
Statistics released on Friday showed only moderate slightly for 13.5 per cent in August from the previous year, while the fixed capital investment, the main driver of economic growth of the country, rose 25.0% in January-August period of one year before the industrial production.
(Additional reporting by Judy Hua, Polly Yam and Ruby Lian; Edited by Raju Gopalakrishnan)

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