WRAPUP 1-China Edition, which adds data to RS economy based

Beijing, Aug 9 Reuters)-China's factory production increased in July at the fastest pace since the beginning of the year, add to a run data suggest that the world's second largest economy can stabilise growth after more than two years of stability.

A constant economy would be a relief for Chinese leaders, who worry about a further slowdown derail their efforts to compensate for the economy of its credit and investment-driven growth model to one in favor of consumption.

Annual production exceeded 9.7 percent 9.9 percent in July compared with the previous year, the fastest growth since January and February, increased the production of National Bureau of statistics data showed.

This was followed by surprisingly strong trade data on Thursday and given targeted measures since mid-year to support SMEs and the base added to signals of the economy can exporters, after slowing down in nine of the last 10 District have found.

"While we would say no, that China still out of the Woods is the recent rise in the sentiment was palpable and, less than 7 percent in 2013 now to decrease the economic growth seems pretty far-fetched talks", said Chester Liaw, an economist at forecast PTE in Singapore.

The Government made it clear that to accept puts it some slowdown as his reforms, but expressed also confidence its growth target of 7.5 percent this year--the slowest in China would growth for 23 years.

China's CSI300 index reversed early losses after the data gain 0.4 per cent at the end and after its largest weekly in a month.

And the Australian dollar, which applies as a proxy for China due to its, extensive trade was 0.4 percent on the day to the highest since 30.Juli.

Separate data showed that consumer inflation ran a benign annual rate of 2.7 percent in July, close to forecasts. A decline in producer prices by 2.3 percent, a 17 month of now deflation, was also suggested the prospects for price developments tame.

Premier Li Keqiang has stressed policy would not change if economic growth via an unnamed lower bound, which kept many 7 percent as, but analysts were confident that moderate price pressures would allow some relaxation.

"The subdued inflation reading necessary scope for implementation is a mini-fiscal stimulus," said Lu Ting, an economist at the Bank of America Merrill Lynch.

A Reuters survey last month found that China is expected not lowering interest rates until late 2014, although a minority of analysts think that a cut is necessary to achieve the growth of 7.5 percent target.

STILL NO CHANGE

Thursday trade export 5.1 percent in July compared with the previous year has increased data showed, a smart bounce sent out their first fall in 16 months in June and imports jumped 10.9 per cent as China home record amounts of some commodities.

Analysts warned still concluded that the data has been driven in the past two days by an actual increase of in final demand.

Said that imports partly by delayed deliveries and unprocessed offers companies, recovery from June, after a break and new companies which were blown up in the business.

As well, some caution was offered, in the interpretation of's Rovolution production data.

A breakdown of the factory data showed performance rose by 8.1 percent in July compared to June growth, hope, while the volume of crude oil in refineries processed climbed 7.1 percent from June in close to 11 percent down.

Performance includes power generated, but lost due to inefficient grid. Power consumption, has fallen steadily on the other side and July numbers are this month.

And although the volume of crude oil in refineries cannot process an instrument for final demand, China consumption data for diesel the most important fuel for vehicles and which demand has fallen, as the economy has cooled, publish.

Huang Guohua, a senior official in the Customs Administration said the trade report with the Chinese and global economies remain caught in a complicated environment not turn initiate.

"It is doubtful, to infer that the recovery in the (trade) signaled a turning point", Huang said. He added, have stable growth this year thanks to Government support measures.