China: Economy in a precarious situation – RBS

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The Chinese economy appears in a precarious situation as some indicators paint a rosy picture in August – higher industrial production, firmer retail sales and a lower unemployment rate and other data suggests otherwise, according to the analysts at Royal Bank of Scotland.

Key Quotes

“In particular fixed asset investment growth in the first 8 months of this year posted its slowest gain since the 20thcentury.”

“Hardly impressive. Moreover, new bank lending eased, hinting at lower risk appetite and a low pass-through of recent monetary easing. This backdrop may pose a hurdle for China in renewed trade talks with the US.”

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