Home>Business>HEAD: China economy SLOWS to WEAKEST since GLOBAL CRASH on US-China trade war fears | City & Business | Finance

HEAD: China economy SLOWS to WEAKEST since GLOBAL CRASH on US-China trade war fears | City & Business | Finance

The yuan also ended trading yesterday at its weakest close against the US dollar since January 2017.

Latest figures showed the economy in China grew less than anticipated, with a 6.5 percent increase year-on-year in the third quarter on 2018.

This is down on expectations for a 6.6 percent growth, according to analysts polled by Reuters, and is lower than than 6.7 percent year-over-year expansion in the previous quarter.

But in more positive financial news for China, the nation is still on track to meet an official growth target this year of around 6.5 percent.

The Asian stock market also today clawed back some losses seen this week.

The Shanghai Composite Index closed higher at 2.6 percent, an improvement after the stock index plummeted to its lowest point since November 2014 on Thursday morning, closing trade down 2.9 percent.

China’s economy grew 1.6 percent on a quarter-by-quarter basis, according to the National Bureau of Statistics

Kelvin Tay, regional chief investment officer at UBS Global Wealth Management, was not shocked by the slowdown in economic growth.

He told CNBC: “China cannot be growing at 6.6-6.7 percent every quarter because of the fact that they’re starting to de-leverage and also for the fact that you’ve got a trade dispute going on with the Americans.”

The economy grew 6.7 percent year-over-year in the first nine months of 2018, according to official statistics.

China stocks have faced a turbulent year as the value of global shares bear the brunt of an escalating trade war between Beijing and the US, further being heightened by policy tightening by the US Federal Reserve.

Washington has so far slapped $250bllion (£190.4billion) of tariffs on Chinese products.

This saw China retaliate with 10 percent tariffs on $60 billion (£46 billion) of US imports.

The tariffs stem from the Trump administration’s demands that China make sweeping changes to its intellectual property practices.

The US also wants Beijing to rein in high-technology industrial subsidies, open its markets to more foreign competition and take steps to cut a $375 billion (£283 billion) US goods trade surplus.

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