China industrial production rose 9.8% yoy in April, slowed from 14.1% yoy, matched expectations. Fixed asset investment rose 19.9% ytd yoy, slowed from 25.6%, above expectation of 19.0%. Retail sales slowed to 17.7% yoy, down from 34.2% yoy, missed expectation of 24.9% yoy.
The National Bureau of Statistics said that the economy showed “steady improvement” in April, but the foundation was “not solid” as new problems are emerging. Recovery also remains “uneven”. It expected the economy to operate within a reasonable range.
Hong Kong and China stocks trade mildly higher in Asian session after the releases, but lack clear momentum for sustainable rebound. HSI is up around 0.5% at the time of writing. The index will have to overcome 28250.60 support turned resistance to confirm short term bottoming. Otherwise, it remains vulnerable for another selloff through 27505.08 support to resume the larger decline from 31183.35.
