BEIJING, Dec. 1, 2016 /PRNewswire/ -- Although China's third quarter GDP figure met expectations, posting its third straight quarter of 6.7% growth, CKGSB Finance Professor Gan Jie's detailed report on China's industrial economy, which directly surveys more than 2,000 Chinese companies, indicates that China's industrial economy has not yet stabilized. The report's Business Sentiment Index (BSI) and employment index both registered below 50 in Q3, indicating contraction. Described as the first of its kind, Professor Gan's large-scale, micro-level quarterly company survey is based on stratified random sampling by industry, region and size from China's National Bureau of Statistics' company database, with around 2,000 firms responding to her survey each quarter. With much official data widely questioned, her results shed light on how the industrial sector is truly coping and what types of reforms are needed. Commenting on the survey results, Prof Gan Jie said, "Weak demand and overcapacity remain the biggest challenges facing the industrial economy, with the prevalence and severity of overcapacity both at historically high levels. On the positive side, however, after five quarters of persistent decline, production has stabilized due to an expansion in consumer goods." Prof Gan continued, "In contrast to conventional wisdom, our industrial survey has consistently found, since its inception in the second quarter of 2014, that financing is not a bottleneck for the industrial economy. Only 4% of firms cited financing as a constraining factor in Q3." Prof Gan added that monetary policy cannot revive the industrial economy, but stressed that supply-side reform, with a focus on reducing overcapacity and improving industrial structure, is necessary for the long-term growth of the Chinese economy. However, she said that, despite short-term challenges, several growth areas such as the rise of the service sector, internet-related businesses, the reform of state-owned enterprises and urbanization all point towards a positive long-term outlook for the Chinese economy.