Reuters Instant View of China’s Q3 GDP

BEIJING, Oct 19 (Reuters) – China’s economic growth slowed slightly as expected in the third quarter as the government’s efforts to rein in the property market and debt risks tempered activity in the world’s second-largest economy.

While China produced forecast-beating growth of 6.9 percent in the first half, many economists and investors had expected momentum would start to fade as the government cracks down on riskier lending and speculation in the housing market.

China’ central bank governor said earlier this week that the economy could grow 7 percent in the second half of this year, while stressing that more needed to be done to reduce the risks from a rapid build-up in debt.

STEPHEN INNES, HEAD OF TRADING, ASIA-PACIFIC, OANDA IN SINGAPORE

“With the China GDP coming in on consensus, whatever bullish sentiment the markets were positioned for…after Zhou Xiaochuan’s comment earlier this week that the economy could grow 7 percent in the second half of the year, should get priced out quickly.

“The GDP reading could weigh negatively on both mainland stock and currency markets as traders may position for further weakness into year-end suspecting financial curbs will continue to have a negative impact on growth in China.

“USD/CNH traders were caught short likely positioning for a more robust GDP.”

 

CNBC via Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

Latest posts by Stephen Innes (see all)