China’s economic growth slows amid trade battle with US

China's 3Q GDP growth slowest since 2009

China's 3Q GDP growth slowest since 2009

Shortly before the data was released, People's Bank of China Gov. Yi Gang, banking and insurance regulatory chief Guo Shuqing and top securities cop Liu Shiyu all issued statements urging investors to remain calm.

China also responded to the new United States tariffs by cutting its own tariffs on non-US goods to help bolster its economy.

The weak construction reading tallies with data in Friday's GDP report that showed infrastructure investment continuing to contract.

'Weakness is largely coming from the secondary industry- most notably manufacturing. In Hong Kong, the Hang Seng index edged 0.8pc lower, while the Hong Kong China Enterprises Index lost 0.6pc. In the first quarter, 6.8 percent had been achieved, the second 6.7 percent.

The world's second-largest economy experienced 6.5 percent growth compared to the same quarter previous year but was slightly behind the first two quarters of 2018, which were 6.8 percent and 6.7 percent, respectively.

The People's Bank of China set the midpoint rate at 6.9387 per dollar, 0.16 percent weaker than the previous day's fix and the lowest level since January 4, 2017.

Global stocks were mixed Friday after Wall Street declined on losses for tech stocks and Chinese economic growth slowed.

More news: Trump Says He Now Believes Khashoggi Is Dead, Threatens 'Consequences'
More news: Pompeo meets with Turkish leaders on missing Saudi writer
More news: Prince Harry & Meghan Markle Reunite With His Sweet 98-Year-Old Friend

"Looking ahead, economic outlook is not optimistic with exports facing further headwinds as US tariffs kick in and demand from emerging countries ebbs", said Nie Wen, an analyst at Hwabao Trust in Shanghai. The result fell short of Reuters analyst forecasts of 6.6%.

China's once high-flying automakers are now feeling the brunt of weaker consumer spending.

Adding to China's equity worries the yuan (USD/CNY) reached its weakest level against the dollar in nearly two years at 9.9424, adding to its 11 percent slide since March.

China and the USA have slapped tariffs on each other in recent months and plans for bilateral trade talks to resolve the dispute have stalled.

Private companies are struggling with liquidity concerns, the economic outlook is slowing as a trade war with the US deepens, and a weakening yuan is starting to prompt capital outflows. Because of higher export and lower import numbers, China is running a bigger trade surplus with the USA, which actually helps boost China's GDP.

Citing opinions of worldwide investors and domestic analysts on the Chinese stock market, Liu said China is becoming the most valuable market for investment, from the perspective of global asset allocation. On Friday, however, the 10-year yield rose to 3.1807 percent from the USA close on Thursday of 3.175 percent. Chinese companies' overseas shipments rose an average of 11.7% from a year earlier, a slight improvement from an average of 11.5% monthly growth in the quarter before.

Faced with a cooling economy, stock market wobbles and a yuan currency under pressure, policymakers are shifting their priorities to reducing risks to growth by gradually easing monetary and fiscal policy. With uncertainty remaining over the future of the economy amid the trade war with the US, sales of new vehicles have dropped in China, and there is speculation that sales for 2018 could drop below the previous year's figure. Last week, the People's Bank of China chose to cut its reserve requirement ratio by 1 percentage point.

Recommended News

  • Teenage gunman kills 19 at Crimea college

    Teenage gunman kills 19 at Crimea college

    Russia's National Guard said on October 18 that it has now deployed officers and riot police to all schools and colleges in Kerch. The incident was first treated as a possible terror attack but Russian authorities are now taking it as a case of mass murder.
    Elizabeth Warren it's okay to be White | Writing My Mind

    Elizabeth Warren it's okay to be White | Writing My Mind

    For the white-grievance set, it's a powerful piece of rhetoric, created to mock Warren and her fellows who think they know better. Warren tweeted that Trump is a "cowardly elitist" and that she "won't sit quietly for Trump's racism" so she took the test.
    Mega Millions Jackpot Grows to $868 Million

    Mega Millions Jackpot Grows to $868 Million

    The chance of matching all six numbers for the Mega Millions and taking home the grand prize is one in 302.5 million. And one of those, sold in San Antonio , had the Megaplier option, available in most states for an extra $1.
  • Black Ops 4 PC player counts have doubled over last year’s game

    Black Ops 4 PC player counts have doubled over last year’s game

    Black Ops originally took place in the 1960s era Cold War, with its sequel jumping to 2025 and the third game landing in 2065. Consequently, the player count has also climbed compared to a year ago , setting franchise records.
    Canada follows Uruguay, legalizes cannabis at 18

    Canada follows Uruguay, legalizes cannabis at 18

    The only legal weed that's for sale in the province sits inside the BC Cannabis Store down the street or it can be ordered online. A bill proposing a framework to regulate and tax retail marijuana sales was sanctioned by a committee, but never put to vote.
    British PM Theresa May tells business leaders European Union  wants autumn Brexit deal

    British PM Theresa May tells business leaders European Union wants autumn Brexit deal

    Chief EU negotiator Michel Barnier said that "we need much time, much more time, and we continue to work in the next weeks". The diplomats said that Barnier had revealed his offer to European Union ministers at a meeting in Luxembourg on Wednesday.
  • Erdogan: Materials in Saudi consulate may have been painted over

    Erdogan: Materials in Saudi consulate may have been painted over

    Reports overnight by US media suggest Saudi Arabia soon may concede Khashoggi was killed at the consulate in an interrogation. Overnight, Turkish forensic teams searched the consulate building in Istanbul where Khashoggi was last seen entering.
    Apple Schedules October 30 Special Event, New iPad and Mac Models Expected

    Apple Schedules October 30 Special Event, New iPad and Mac Models Expected

    Even though Apple just held its annual iPhone unveiling event, there is more yet to come this year from Cupertino. As first reported by Neil Cybart, Apple has announced a media event for October 30 , 2018 at 10:00 am Eastern.
    German police suspect hostage has been taken in Cologne

    German police suspect hostage has been taken in Cologne

    German police say they've freed a woman who had been taken hostage in Cologne's main train station and have her captor in custody. The hostage take-, who was severely injured in the police operation, was taken to an intensive care unit in a local hospital.
  • Canelo Talks Fielding Fight at 168, MSG, DAZN, More

    DAZN, which also signed a multi-year deal with Bellator MMA, had previously launched in Japan, Canada and parts of Europe. Now, sports fans can view Canelo's fights and the deep Golden Boy Promotions stable for a low monthly subscription cost.
    Beto O’Rourke Borrows 'Lyin' Ted' Insult As He Repeatedly Attacks Sen

    Beto O’Rourke Borrows 'Lyin' Ted' Insult As He Repeatedly Attacks Sen

    Cruz laughed off the exchange saying it was obvious that O'Rourke needed to attack to try and reverse polls that show him fading. No Democrat has won any of Texas' almost 30 statewide offices since 1994, the nation's longest political losing streak.
    How to watch the Huawei Mate 20 Pro Live Stream

    How to watch the Huawei Mate 20 Pro Live Stream

    The Mate 20 Pro comes with a 40-megapixel standard camera, a 20-megapixel wide-angle camera and a 8-megapixel telephoto camera. The phones sport the first 7nm processor among Android devices, the Kirin 980 that was unveiled at IFA earlier this year.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.