Equity markets are on the back foot again this morning following weak growth data from China overnight.
The poor recent Chinese economic data shows that China’s economy could indeed be slowing down despite government’s stimulus measures to cut personal income taxes and support private sector financing. Against the backdrop of growth moderation and trade anxiety in China, eyes will be towards the upcoming annual Central Economic Work Conference (CEWC) set on 19-21 December. The CEWC will set out plans for next year, economic forecast, as well as give direction towards the directions where Sino-US relations will be heading. There are also some expectations of stimulus measures as well as more details on recent reports of an increase in market access to foreign companies and on the reported revisions to the Made in China 2025 Plan, where some targets could be delayed.