Deutsche Bank analysts point out that China’s October economic data released was weaker across the board with industrial production coming in at +4.7% YoY (vs. +5.4% YoY expected), retail sales printing at +7.2% YoY (vs. 7.8% YoY) and the YtD fixed asset ex rural investment sliding to the lowest since at least Feb 1998 (where we have data so likely much longer) to +5.2% yoy (vs. +5.4% yoy).

“The surveyed unemployment rate came in at 5.1% (vs. 5.2% previously). Following the release, China’s National Statistics Bureau spokeswoman Liu Aihua said that China’s overall economic momentum hasn’t changed while the challenges it faces shouldn’t be underestimated before adding that China faces rising cyclical issues and structural conflicts. The NBS also said downside growth pressure has continually intensified and the country should carry out policies to increase economic resilience and meet whole-year economic growth targets. Our strategists think the policy responses will be limited though as China has met their employment target for the year and are still seeing de-leveraging as a policy goal.”