Sumary of Will China ETFs Feel the Heat of Weak Economic Data?:
- This story originally appeared on Zacks The world’s second-largest economy continues to see a streak of disappointing economic data for August.
- China’s retail sales rose 2.5% year over year in August, lagging the forecast of 7% growth (according to a Reuters article).
- – Zacks Commenting on the data, Louis Kuijs, Head of Asia Economics at Oxford Economics, has said, “Economic growth slowed in August as consumption was hit by the lingering impact of earlier COVID outbreaks and investment remained weak.
- Meanwhile, a new outbreak which started a few days ago in Fujian is posing downside risk to our forecast of a pick-up in growth in Q4 after a weak Q3,” as stated in a Reuters article.
- There is no doubt that China showed fast recovery from the pandemic-led economic slowdown.
- However, it appears like slowing export levels, strict initiatives to control hot property prices, the coronavirus outbreak and efforts to reduce carbon emissions might have triggered a slowdown in economic recovery.
- Considering the current economic conditions, various analysts are expecting enhanced government support.
- In this regard, Jingyang Chen, Greater China economist at HSBC, has said, “As growth is approaching the lower end of the officially-estimated potential growth range of 5.0-5.7%, Beijing may step up targeted easing to generate a moderate pick-up in growth in our view.