China’s Economic Slowdown Weighs on Market Sentiment
China’s economy expanded by 4.8% in Q3, meeting expectations but marking its weakest growth in a year. The deceleration from 5.2% in Q2 reflects cooling momentum as the nation grapples with tepid domestic consumption, collapsing property investment, and strained US trade relations. Officials maintain confidence in achieving the 5% annual target, citing a 'solid foundation' from January-September performance—yet mounting risks loom.
Fixed-asset investment contracted 0.5% year-to-date, its first decline since 2020. The property sector’s 14% investment plunge has become systemic, dragging down infrastructure (1.1% growth) and manufacturing sectors. Analysts describe the real estate downturn as structurally alarming, with new fiscal interventions like the 500B yuan provincial liquidity measure failing to offset the gloom.
