China’s Shanghai SSE Composite dived to as low as 2449.20 in initial trading, following the steep selloff in the US. The index recovered after the China Banking and Insurance Regulatory Commission (CBRC) announced measures to encourage private equity funds to buy public traded shares. However, weaker than expected Q3 GDP data appears to cap SSE’s recovery as it fails to get hold of 2500 handle.
Released from China, Q3 GDP growth slowed to 6.5% yoy, down from 6.7% yoy in Q2 and missed expectation of 6.6 yoy. That’s also the weakest reading since Q2 of 2009. On quarterly basis, growth slowed to 1.6% qoq, down from Q2’s 1.8% qoq. Also release, industrial production grew 5.8% yoy in September, down from 6.1% and missed expectation of 6.0% yoy. But retail sales rose 9.2% yoy, up from 9.0% yoy and beat expectation of 9.0% yoy. Fixed asset investment rose 5.4% ytd yoy, up from 5.3% ytd yoy and beat expectation of 5.3% ytd yoy.
Statistics bureau spokesman Mao Shengyong said China is still able to reach the full-year growth target of around 6.5% in 2018 even though downward pressure increases. He added that infrastructure investment growth will stabilize and “consumption upgrade” will continue. Nonetheless, Mao also admitted that external environment will pose uncertainties on stabilizing growth.