Headline macro-economic data for August fell sharply, but a closer reading of the numbers suggests that worse may be to come, with the full impact of weak credit growth on the real estate sector yet to be felt. 

Chinese banking authorities have issued new rules to curb the artificial inflation of deposits at the end of each month or quarter. The new regulations could significantly reduce banks’ exposure to shadow finance, likely squeezing their finances and lending capacity. However, we are unsure how effectively the new regulations will be enforced.

Although home sales in the 42 cities monitored by China Confidential saw a seasonal uptick in the first week of September, YoY growth remained negative.

Coal consumption at independent power plants and steel output at China’s largest mills fell sharply in the second half of August, suggesting weakness in the industrial sector.

More Chinese banks are reducing mortgage rates for first-time buyers, but the impact on home sales has, so far, been muted.

Home sales data for the first two weeks of August showed no sign of recovery, but, equally, little evidence that the downward trend in home sales is becoming more severe.

Chinese fixed-asset investment (FAI) growth slowed sharply in July, according to data published August 13 by the National Bureau of Statistics. State FAI growth weakened, while the June rebound in private investment growth proved short-lived, in line with our expectations.

China’s two largest e-commerce companies, Alibaba and JD.com (JD:Nasdaq), continue to cement their leading position in the rapidly consolidating e-commerce market at the expense of mid-sized players, according to our latest consumer survey.