According to weak economic data, the likelihood of government -supporting measures of the government has increased in China. In July, both retail sales and industrial production and investments in property systems disappoint. According to experts, the weak data indicate significantly more slow growth in the third quarter. The government goal of growth of five percent without further major support measures is in danger, said Serena Zhou, China expert at Mibuho Securities Asia.
However, analysts are not sure when the government and the central bank will take further steps to boost the economy and what means they then use. Zhang Zhiwei from Pinpoint Aset assumes that those responsible still wait for the publication of the gross domestic product for the third quarter on October 20. In addition, the course of the negotiations with the USA should have a significant impact on the time and the extent of the measures. Furthermore, the US Federal Reserve Fed is the focus. If this reduces the interest, the Chinese central bank also has scope for further monetary political steps.
Industrial production continued in August. Compared to the previous year, she only attracted 5.2 percent and thus half a percentage point less than last. Economists had expected 5.6 percent with an increase. The retail turnover only increased by 3.4 percent. In July, sales in retail had increased by 3.7 percent. The economists surveyed by Bloomberg, on the other hand, had expected slight acceleration. The property in investments also disappointed with growth of only half a percent in the first eight months of the year.