Chinese July data disappoints

July data for China’s retail sales, industrial production and fixed investment were released and all three indicators were lower than forecast. Credit Agricole said the lower-than-expected data was the result of the recent equity market crash which flowed through to lower consumer spending while government-directed equity buying had diverted bank lending away from the real economy. ANZ said if conditions do not improve in the coming months, growth could fall below 6.5% in the September quarter. The latest sets of data comes on top of soft trade figures recently published that showed exports and imports both slumping.