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China’s economy expanded 4.6 per cent year on year in the third quarter, official data showed on Friday, slower than in the previous three months, underlining faltering growth as Beijing steps up efforts to boost the economy.
The figure is below the government’s target for full-year growth of 5 per cent and less than the 4.7 per cent recorded in the three months to June as sluggish consumption and a property slump weighed on household sentiment.
The softer growth will underscore the need for more support for the economy from Beijing, which in late September announced its biggest monetary stimulus since the pandemic and followed up with promises of heavy fiscal spending.
China’s markets reacted exuberantly to the news of monetary stimulus but have turned cautious as investors await more details of the fiscal stimulus. The CSI 300 index of Shanghai- and Shenzhen-listed stocks and Hong Kong’s Hang Seng benchmark are down in October, although they remain up for the year to date.
Efforts by the country’s economic planner, finance ministry and housing ministry to boost confidence have fallen short of investor expectations. The Hang Seng Mainland Properties index fell 6.7 per cent on Thursday after the housing ministry’s support for the real estate sector disappointed markets.
Authorities have yet to quantify the extra fiscal spending, but analysts have said this might be announced at a standing committee meeting of the National People’s Congress, China’s rubber-stamp parliament, in the coming weeks.
This is a developing story
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