China’s economy faces headwinds this year as the effects of deleveraging and industrial capacity cuts kick in. Photo: BloombergBeijing: The pace of China’s economic expansion dialled back a notch, as factory output and investment moderated last month amid the government’s push to tighten financial regulation and reduce leverage. The economy faces headwinds this year as the effects of deleveraging and industrial capacity cuts kick in. With cooling property markets and uncertainty in the trade outlook, policy makers may refrain from tightening too aggressively to keep growth humming. “The main downside risk is heavy industry, which may be feeling the effects of the housing slowdown in major cities.” Bloomberg

Source: Mint August 14, 2017 03:22 UTC