Research Team at Societe Generale, notes that China activity data for the first two month of the year were a mixed bag. Key Quotes “Industrial production and retail sales disappointed, while fixed asset investment surprised on the upside. Particularly housing staged a strong recovery. This, however, seems too good for policymakers’ comfort, as housing prices in big cities are rising excessively quickly and shadow bank lending is seen playing an increasing and toxic role in surging housing sales. Furthermore, the larger-than-expected slowing in bank lending supported our view of no significant relaxation of monetary policy in the offing, while the bad debt problem and its solution seem to grab ever more attention from the authorities.” For more information, read our latest forex news.