a rebound emerged in September data, cemented views of analysts and investors that China's rebound was gathering momentum after a raft of measures by Beijing under its so-called policy fine-tuning.
China cut benchmark interest rates in both June and July, has lowered bank reserve ratios three times since late 2011 and made repeated, large-scale liquidity injections into the financial system. It also said in September it had sped up approval on infrastructure projects worth about $157 billion.
All that has engendered a view that policymakers have done enough to keep the economy ticking along. Investors had been concerned that efforts to cool the economy had been mistimed, unintentionally coinciding with a sharp slowdown in external demand, with recovery in the United States remaining tepid and Europe still unable to escape its sovereign debt crisis.
Zhang Zhiwei, chief China economist at Nomura, predicts China's economic growth will pick up sharply in the fourth quarter to 8.4 percent, which would be the highest in a year, from 7.4 percent in the third quarter.
The stronger-than-expected export data in October supports our view, Zhang said. We believe domestic demand is improving and will likely strengthen further over the rest of 2012 as the policy stance is set to remain loose, he wrote in a note to clients after Saturday's trade data.
Consumer price inflation eased to its slowest pace in nearly three years in October, to sit well below the government's official 4 percent target.
Government officials have said repeatedly they intended to use a period of slowing growth in 2012 to adjust economic policy settings, particularly around prices administered by the state, that might otherwise risk fuelling inflation.
Such reforms are regarded as crucial, both by foreign analysts and government think-tanks, if China is to maintain robust growth needed to close a yawning wealth gap and support an urbanisation drive core to Beijing's development plans.
Hu's keynote speech at the opening of the congress acknowledged as much. He said China's development should be much more balanced, coordinated and sustainable.
The party, which has constantly stressed the need for continued one-party rule, has tied its legitimacy to economic growth and lifting hundreds