China: Weakness all around - TDS

Research Team at TDS, notes that China’s New Loans data on Friday and Retail Sales/ IP and Fixed Asset Investment on Sat all came in below expectations, raising questions how effective government efforts to engineer a transitions towards consumption via heavy infrastructure spending actually are.

Key Quotes

“The NBS said the IP miss was due to weak external demand and over-capacity in coal and steel sectors. And on the weekend there were reports the CBRC is asking banks to follow govt directives and loosen credit. IP +6%/yr vs +6.5%/yr exp, Retail Sales, +10.1%/yr vs +10.5% exp, FAI +10.5%/yr vs +11% exp.”