Danny Dolan, Managing Director of asset manager and ETF provider China Post Global, has commented on the release of China’s latest economic growth figures, saying 6.5 per cent instead of 6.6 per cent is still an enviable figure for any other major economy.
“Today’s news is unsurprising given the headwinds from tightening credit, US trade war and renminbi depreciation. Reduced growth in consumption reflects those headwinds, although several foreign luxury goods manufacturers have reported strong China sales in Q3, reflecting the continued growth of the Chinese middle class.
“Policy response is likely to be strong support for the economy, through infrastructure spending and other measures. The challenge for central authorities is balancing that support with continued measures to contain debt, particularly at local government and corporate level,” Dolan concludes.