China GDP grew 1.3% qoq in Q2, matched expectations. Industrial production growth slowed to 8.3% yoy in June, but beat expectation of 7.9% yoy. Retail sales growth slowed to 12.1% yoy, above expectation of 11.0% yoy. Fixed asset investment growth slowed to 12.6% ytd yoy, above expectation of 12.5% yoy. While growth momentum appears to be slowing, recovery is still very strong.
Hong Kong HSI rises in response to the solid data from China, and it’s trading up more than 1% at the time of writing. Notable support was seen from 26782.61 resistance turned support after last week’s spike low. Focus is back on 55 day EMA (now at 28484.00). Sustained break there will argue that correction from 31183.35 has completed and would bring retest of this high.