China is still grappling with major challenges from deflationary pressures and a real estate crisis as the year progresses, and investors have so far been overwhelmed by policies aimed at maintaining economic momentum.
Statistics released on Wednesday painted a mixed picture for the world’s second-largest economy, with the country meeting its official growth target for this year but leaving behind some of the most persistent problems weighing on domestic demand and confidence. I haven’t been able to get rid of it. While many indicators of home prices and real estate spending are disappointing, deflation remains persistent. As a measure of broad price fluctuations, it was the longest period of quarterly decline since the 1999 Asian financial crisis.