China: More slowing to come - RBS

China’s economy grew 6.5%y/y in Q3 – the slowest pace since the financial crisis, notes the research team at RBS.

Key Quotes

“Surely Trump’s trade war is to blame?  Not the case. Well, not yet at least. Chinese exports actually continue to grow at a robust pace (ironically enough the strength in the US economy playing a key role). This slowdown is homegrown. And it has been on the cards for a number of months as China has sought to dampen credit growth.”

“Car sales have weakened and investment remains soft by China’s standards. It’s all relative, of course. 6.5% is a stonking pace. But there’s likely a bit more slowing to come.”