Data released overnight signalled a potential moderation in growth ahead over the coming few quarters as credit expansion decelerates. Apart from the financing aspect, year-over-year industrial output slipped to 6.20% in October, missing analysts’ projections of a 6.30% gain and coming in below a 6.60% gain recorded in September. Fixed-asset investment growth slowed the January-October period according to figures from the National Bureau of Statistics while October retail sales climbed 10.00% from a year earlier, falling to its slowest rate in a year.
China’s economy outpaced the dire forecasts from financial markets after reporting solid growth of almost 6.90% in the first nine months of the year. However, momentum is likely easing as Beijing’s clampdown on debt risks stifles demand while tighter pollution rules impede factory output. USDCNH is slipping in Tuesday trade to currently hover around 6.6470.