GDP grew 4.8% in the third quarter, deaccelerating from the 5.2% growth in the April-June period and the 5.4% in the January-March period.
China’s economic growth slowed for a second straight quarter from July to September, official data released on Monday showed, underscoring headwinds from U.S. tariffs and weakness in some local industries.
The gross domestic product (GDP) grew 4.8% year-over-year, in line with economists’ estimates from Reuters. However, the rate was lower than the 5.2% growth in the April-June period and 5.4% in the January-March period. China is aiming for full-year growth of around 5%.
What The Data Reveals
The world’s second-largest economy continues to grapple with a host of challenges, including renewed trade tensions with the United States, weak domestic demand, and a persistent slump in the property market.
Retail sales, a major gauge of consumption, rose by 3% in September, down from 3.4% in August. Industrial output grew by 6.5% last month, accelerating from a 5.2% rise in August.
Private investment, a gauge of investor confidence, declined by 3.1% in the first nine months of the year, compared with a 2.3% decline in the January-August period last year.
Other Economic Indicators
Meanwhile, other economic indicators released on Monday will also likely weigh on trading in the Chinese market. The country’s central bank kept the benchmark lending rates unchanged for the fifth consecutive month, in line with expectations.
Chinese President Xi Jinping and the country’s top leaders, known as the Central Committee, will convene for the “Fourth Plenum” on Monday, a three-day closed-door meeting to discuss China’s next five-year plan.
Separately, data from China’s customs department showed that the country’s exports to North Korea, a heavily sanctioned nation, rose 30.75% year-over-year last month, according to a Reuters report. They included soybean oil, processed hair and wool for wig-making, petroleum bitumen, and granulated sugar.
Market Snapshot
Despite economic headwinds, Chinese stocks — including U.S.-listed ones — are rallying, driven by AI-fueled gains in Alibaba and other major tech firms.
So far this year, the iShares MSCI China ETF (MCHI), which tracks major Chinese companies, and the KraneShares CSI China Internet ETF (KWEB), which tracks Internet and tech companies, have gained around 37%. That’s three times the 12.7% gains in the SPDR S&P 500 ETF Trust (SPY), which tracks the benchmark S&P 500 stocks.
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