Capital input indicator increases slightly, while the labor input indicator declines to lowest point
Shanghai – December 13, 2016 – The latest Mastercard Caixin BBD China New Economy Index (NEI), jointly published by Mastercard and Caixin Media, has shown a moderate improvement in its November reading.
According to data jointly released by Caixin Insight Group CEBM and BBD on December 2, the November Mastercard Caixin BBD NEI stood at 30.4, meaning that the new economy accounted for 30.4% of the total economic input in November. This is 1.2% higher than October’s score of 29.2%, thereby returning to a relatively high level for the year-to-date.
The NEI is a critical indicator that measures the economic development status of China, the world’s largest market. It is part of the Mastercard global insight research resources, and a major initiative by Mastercard to support China’s economic growth under the conditions of the “New Normal”. The index includes the three first level indicators of labor, capital, and technology, which are given a weight of 40%, 35% and 25% respectively in the NEI.
The NEI’s rally in November was mainly due to increasing capital input. The Capital Input Index fluctuated considerably over the past half year to recover again in November after dropping in the previous month.
The Labor Input Index broke the 30-point mark for the first time in March before trending downwards for more than half a year to 27.8 in November, marking the lowest point since the launch of the New Economy Index.
The Science and Technology Input Index rose moderately to 32.2 in November.
The NEI is the fruit of a research partnership between Caixin Insight Group and BBD, in collaboration with the National Development School, Peking University. The NEI for the previous month is released at 10:00 AM on the 2nd day of each month. In July this year, the name of the NEI was officially changed to the “Mastercard Caixin BBD China New Economy Index”.
The NEI measures the level of activity of the New Economy during China’s economic transformation compared with the traditional economy, or the ‘old economy’. It covers 111 sectors in nine categories, including: energy saving and environmental protection; the new generation of the information technology and information services industry; biomedicine; high-end equipment manufacturing; new energy; new materials; new energy automobiles; advanced technical services and research and development; as well as financial and legal services.
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Huanyu Wu, 86 10 8519 9304
Cindy Choo, 86 21 2411 0003
Caixin Media is China’s leading media group dedicated to providing financial and business news through periodicals, online content, mobile applications, conferences, books and TV/video programs. Caixin Media aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms. Caixin Insight Group is a high-end financial data and analysis platform. For more information, please visit www.caixin.com.
Ling MA, Caixin Insight Group, email@example.com, 86 10 8590 5204
About BBD (Business Big Data)
BBD is a leading Big Data and quantitative business analytics firm specializing in the analysis of the high-growth industries emerging in Mainland China. Through dynamic data tracking, credit analysis, risk pricing and economic index construction, BBD provides its clients with a wide range of services at both the macro and micro level. For more information, please visit www.bbdservice.com.
CHEN QIN, Chief Economist, firstname.lastname@example.org, 86 28 65290823
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