China's economic activity again weakened in September, China Beige Book survey shows

The People's Bank of China has taken several steps to reduce the cost of borrowing, but the rate of loan rejections and average rates have risen.

Home builders reported that prices fell this month due to a slowdown in sales. Realtors reported lower prices and flattened sales despite a significant drop in mortgage interest rates.

China Beige book said that "reports about China experiencing deflation are exaggerated."

According to the China Beige Book, released on Friday, China's modest economic recovery appears to have stagnated in September. Retail sales, pricing power, manufacturing production, and loan growth were all lower than they had been the previous month.

This setback will increase fears of anemic growth in the third quarter, increasing the risk that the second largest economy in the world falls short of its stated 5% target. Economists are still currently

Expect September to be a relatively weak month.

Most data point to a stabilization of the slowdown.

A number of August economic indicators showed signs of stabilization for the Chinese economy. Data on retail sales and industrial output last month

In fact, the results exceeded expectations

Other data, such as the purchasing managers' index and inflation rates, which are typically viewed as leading indicators, also confirms these encouraging signs.

"Retail spending slowed [in September]

.

In a Friday statement, the China Beige Book survey administrators stated that food saw the largest pullback along with luxuries. "Services''revenge' spending had mixed results. Travel was strong as the Moon Festival neared, but sales at hospitality firms and chains restaurants decelerated dramatically."

China Beige Book administrators stated that its findings for September were based upon a survey of 1330 companies, equally split between state-owned and private enterprises. However, there was a slight majority of large enterprises compared to small and medium-sized businesses.

China begins a week-long celebration of its National Day, which falls on October 1, this year, to coincide with the Mid-Autumn Festival (also known as Moon Festival or Harvest Moon Festival).

Travel outbound has soared

In the first "Golden Week", international travel has resumed. Trip.com reported that bookings to some foreign destinations increased by 20 times in comparison with the same holiday period of last year.

Property malaise

This privately administered survey revealed that corporate borrowing dropped to "very low" levels as the number of loan rejections increased and the average interest rate rose despite the People's Bank of China's efforts to reduce the cost of borrowing.

China Beige Book, a survey released before the official China data for the month, shows that mainland lenders are becoming more cautious about their risk exposure due to fears of contagion. This is because of the debt problems plaguing Chinese developers as a result of broader crackdowns.

Beijing will release its official purchasing manager index on Saturday. Money supply data are scheduled for October 11, while monthly trade and inflation data will be released tentatively on Oct. 13. On October 18, a slew activity data is expected, as well as China's growth figure for the third quarter.

In September, the property market in China showed further signs of deterioration.

Home builders reported that prices fell this month, as sales declined. China Beige Book reported that realtors reported lower prices and flattened sales despite a significant drop in mortgage interest rates.

The survey administrators said that "Commercial Property's problems have intensified, with the price gains reducing sharply and the speed of transactions accelerating along with it." The survey administrators said that their Fiscal Activity Index had turned positive. However, the results so far are "closer than a breath fresh air to life support."

Factory activity is down.

The survey results showed that the growth in export orders among respondents has declined to the lowest level since March. This highlights the external pressures China is facing from a slowdown in global demand, which is compounding the struggles of the country with its anemic domestic market.

The onshore Chinese Yuan has declined by approximately 5.5% year-to-date against the dollar. In this article, we will discuss how to get started.

a Wednesday statement

According to CNBC, after a meeting of the People's Bank of China's monetary policy committee quarterly, the bank reiterated its commitment to "resolutely avoid currency overshooting risk and keep the Yuan essentially stable at a sensible equilibrium."

Even though the pace of domestic orders remained steady, output growth was slightly lower than August. China Beige Book revenue index fell in September, indicating that profit gains were weaker than August.

The private survey showed that, despite the fact that inflation likely slowed down in September, with input cost, wage rate, and sales price indexes falling from the previous month, price gauges were still higher than they were a year earlier, while inflation of input costs remained at par.

China Beige Book survey administrators stated that reports of China's deflation are exaggerated.