China: Tale of disappointing data – Deutsche Bank

Research Team at Deutsche Bank, notes that over the weekend China released its key activity reports for April – almost all of which disappointed.

Key Quotes

“We learned that IP rose 6.0% yoy, down from 6.8% yoy in March. Retail spending rose 10.1% yoy (down from 10.5% yoy) whilst fixed asset investment rose 10.5% yoy for the year to date (down from 10.7% yoy).

Property market was one of the few bright spots, with sales up 55.9% yoy for the year to date. Bloomberg’s estimate of monthly GDP growth slowed to 6.9% yoy from 7.1% yoy previously. Reflecting on all of this data, Zhiwei sees risks to his Q2 GDP growth of 7.0% yoy as tilted to the downside, and he still sees growth slowing in H2.”