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    Chinese economic data 'down but better than expected'

    The latest economic data from China has shown a downturn in quarterly growth. 

    The publication of the latest official economic data for the third quarter in China has proven better than many analysts had predicted, but still remains the worst quarter for growth since 2009.

    Economic growth for the period of July to the end of September this year reached 6.9% in China, an improvement of the predicted level of 6.8% that analysts had put forward last week.

     

     

    However, this was still the first time that growth has been registered at less than 7% - a figure that has been witnessed in every quarter for more than the last six years.

     

     

    Analysts are therefore predicting this could be the start of a more sustained slowdown in growth for China, although this too may not be the negative news that some may find at first glance.

     

     

    Singapore-based economic analyst Julian Evans-Pritchard told Reuters: "Underlying conditions are subdued but stable. Stronger fiscal spending and more rapid credit growth will limit the downside risks to growth over the coming quarters."

     

     

    During its last full trading session, the Shanghai Composite Index recorded a loss of 0.11% on the back of this latest quarterly economic data, although the repercussions of the downturn do not yet seem to have adversely impacted investor confidence.

     

     

    Indeed, the marginal fall is reflective of performance across much of the region on Monday, with stability witnessed in both Hong Kong (growth of 0.04% for the Hang Seng Index) and in Australia (growth of 0.02% for the ASX All Ordinaries Index).

     

     

    The only major Asian market to demonstrate more pronounced losses so far this week has been the Japanese Nikkei Stock Average 225, which fell by 0.88%.


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