Search ForexCrunch

Iris Pang, economist at ING, points out that China’s fixed asset investment  grew only 5.2% year-on-year, year-to-date  in October, marking its slowest growth rate since the data started  in 1998.

Key Quotes

“The weakness here shows that Chinese  business investment  has  been highly  affected by the trade war.”

“Investment  in the textile industry (-8.5%YoY YTD) and  electric equipment (-7.5%YoY YTD) actually contracted. Investment  in these areas is only likely to recover  when there is substantial progress in the trade negotiations.”

“For most of 2019, investment  has  been supported by transportation infrastructure investment  via the issuance of local government special bonds. As the end of the year approaches, investment  in  these projects has slowed, shrinking  5.9%YoY YTD though  we expect a pick up from 1Q20.”