China economy

New loans extended by Chinese banks posted their first decline since 2011 last year, underscoring weak demand for financing in the economy plagued by lingering deflation and a housing slump.

The most recent inflation readings suggest the GDP deflator, a broader measure of economy-wide prices, will likely extend its drop for the seventh straight quarter, according to Bloomberg Economics.

Top officials led by President Xi Jinping pledged to raise China’s fiscal deficit target next year following the annual Central Economic Work Conference (CEWC) that ended Thursday.

While China’s economy has shown signs of stabilising in recent months, looming US tariffs, however, have dented the prospects of exports and added pressure to the world’s second-largest economy.

China’s oil consumption has been a weak spot for the market, and last month’s decline in inflows came as local refiners cut throughput amid weaker margins.

“The data is telling us that a soft landing is the most likely outcome," Lombard Odier's John Woods.

“China is entering a period where strategic opportunities as well as risks and challenges coexist, and unexpected factors are rising,” Xi said in the speech published Thursday.

Guppy notes that the Shanghai Index rally has lost momentum and is testing support near 3,150, which was also the resistance level in May.

The senior minister, who spoke at the FutureChina Global Forum on Oct 18, also touched on the Chinese economy, China’s fundamental change and more.

The onshore equity benchmark slipped into a correction on Thursday after a high-profile press briefing on measures to support the property market ended with no major outlays.