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Analysts at BNP Paribas note that China’s economic growth continues to slow and they have revised down their GDP forecasts since June.

Key Quotes

“Industrial activity and exports have been hard hit by US tariff hikes. Domestic demand has also decelerated.”

“The central bank is easing liquidity and credit conditions, though the reduction in financial-instability risks should remain a priority and banks seem to remain prudent. Fiscal policy is expansionary through increased infrastructure spending and a rising number of household/corporate tax cuts.”

“In the short term, exports and private domestic investment should continue to decelerate. Tax measures should have some success in supporting consumer spending.”