The China-US trade war, deleveraging, and structural shortcomings in China’s banking system are some of the reasons for the slow-moving of GDP.
A Societe Generale Analyst Wei Yao says, “The latest data are not yet convincing that the targeted approach alone is enough to cushion the economy from trade-war and deleveraging blows.”
He added, “Even though an imminent policy easing move may be put on hold because of the June rebound, we maintain our view that the PBoC will resume headline easing at some point – likely in August.”
Any change from Chinese policymakers is still not unveiled. China will have to resolve the trade war with the US and domestic economic problems.