China: GDP growth slowed to 6.5% in Q3 – Standard Chartered

Analysts at Standard Chartered note that China’s economic growth slowed to 6.5% y/y in Q3 from 6.7% in H1, falling short of market expectations of 6.6%.

Key Quotes

“On a q/q basis, growth moderated to 1.6% in Q3 from 1.8% in Q2 (seasonally adjusted). Market confidence has fallen much more rapidly than growth performance.”

“Amid rising trade tensions with the US, stabilising economic growth has replaced deleveraging as the government’s top near-term priority.”

“We see this policy shift as a clear signal that the government is committed to achieving its 6.5% growth target for 2018. We maintain our forecast that GDP will grow 6.4% in Q4; this would take full-year growth to 6.6%, slower than 6.9% in 2017. In the short term, we think downside risks to China’s economy remain largely contained, as the government still has room to shore up growth via increased economic stimulus.”