China faces headwinds as growth dips

China’s latest growth figure of 6.5% is an unsurprising result of headwinds from tightening credit, US trade war and renminbi depreciation.

Commenting on the Chinese economy, Danny Dolan, managing director of China Post Global, commented: “6.5% instead of 6.6% is still an enviable figure for any other major economy. 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. The challenge for central authorities is balancing support, through infrastructure and other spending, with continued measures to contain debt, particularly at local government and corporate level.” China Post Global is the international asset management arm of China Post Fund, a domestic Chinese asset manager.