China in Precarious Balancing Act

During last few weeks, China’s economic performance has been grim. Paradoxically, it reflects the shift to new kind of growth.  July was not a good economic month in China, except for exports. More bad signs of sluggishness came with the preliminary August manufacturing data.

In China, an array of indicators seem to reflect faltering growth, from industrial output and retail sales to electricity production, imports and government revenues.

The new normal is reflected by a sharp decline in credit, weak domestic investment demand and a third consecutive monthly decline in housing sales.  Recently, the great challenge of Premier Li Keqiang has been to manage the housing market volatility, while continuing deleveraging in the local government.


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.