China Says "Remain Calm" Over Missed GDP Target: Growth "Only" 6.5%

China "only" had 6.5% growth, missing targets. I wonder if growth is really closer to 3%

The Wall Street Journal reports China Growth Slows to 6.5%; Finance Officials Try to Soothe Worried Investors.

China’s economic expansion slowed to its weakest pace since the financial crisis, as top financial regulators launched an extraordinary coordinated effort to calm jittery investors.

The rate of growth in the third quarter dropped to 6.5%, falling short of market expectations, official statistics released Friday showed. Growth in industrial output and consumption weakened in the quarter, while exports held up despite the country’s bruising trade fight with the U.S.

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. Mr. Guo said recent “abnormal fluctuations” in Chinese stock markets don’t reflect the country’s economic fundamentals and “stable financial system.”

Ignore Abnormal Fluctuations

It seems there have been "abnormal fluctuations" since mid-2015. Then again, were the abnormal fluctuations to the upside or lower?

The other remaining issue is whether or not China really has 6.5% growth as reported.

Trifecta in Play

6.5% GDP?

I suggest "take the under", way under. The State-Owned-Enterprise (SOE) earnings are all a mirage. The tide is going out.

By the way, expect similar action in US equities because they are equally overvalued.

Mike "Mish" Shedlock/

Comments (11)
No. 1-7
KidHorn
KidHorn

Seems like China is losing the trade war. Not sure what the end result will be since saving face is a big deal in China.

Calvin Kramer
Calvin Kramer

Friend who visits china province often says the Yuan used to be 9 to 1 dollar, now we are about 7 to 1, they said it's going back up to 8 to 1. China may have taken it's trading partners to the max, but I doubt it, they have put inroads into every country that will let them in as they continue to build factories, mines, and agricultural all over the world, this is called spreading risk or looking out for number 1, or just being imperialistic but also smart. Foxconn in Wisconsin is a good recent example. And, it's not just Foxconn, they are now putting more inroads into same state, i.e. Ginseng. They know how to keep their money local so to speak. China has nothing to worry about, as they power into having a more consumer based economy they don't really need the domestic growth they used to be so reliant on. Every year I go down to our local campus and take a look around the more Asians I see in our colleges, they are very supportive of America, we need China more than we think, or should I say they are supporting our local economies more than we think.

JL1
JL1

How much did debt in China increase during that time? How much did currency in circulation increase during that time?

If those increased say 8% then China's economy actually contracted -2% and then put all the ghost cities rotting away on top of that and other crazy mal-investments.

China is even worse bubble than USA or EU...

JL1
JL1

How much of US growth is due to the Trillion dollar deficit and cutting taxes that cause more money to circulate in the economy as long as those 1000 dollar bonuses are getting spent that many companies gave their employees once after Trump lowered taxes...

stillCJ
stillCJ

Editor

Why would ANYONE believe statistics put out by the Chinese government? Are you kidding me, or is it just a joke? Even here in the US everyone knows that 57% of statistics are just made up.