China Says "Remain Calm" Over Missed GDP Target: Growth "Only" 6.5%
The Wall Street Journal reports China Growth Slows to 6.5%; Finance Officials Try to Soothe Worried Investors.
China’s economic expansion slowed to its weakest pace since the financial crisis, as top financial regulators launched an extraordinary coordinated effort to calm jittery investors.
The rate of growth in the third quarter dropped to 6.5%, falling short of market expectations, official statistics released Friday showed. Growth in industrial output and consumption weakened in the quarter, while exports held up despite the country’s bruising trade fight with the U.S.
Shortly before the data was released, People’s Bank of China Gov. Yi Gang, banking and insurance regulatory chief Guo Shuqing and top securities cop Liu Shiyu all issued statements urging investors to remain calm. Mr. Guo said recent “abnormal fluctuations” in Chinese stock markets don’t reflect the country’s economic fundamentals and “stable financial system.”
Ignore Abnormal Fluctuations
It seems there have been "abnormal fluctuations" since mid-2015. Then again, were the abnormal fluctuations to the upside or lower?
The other remaining issue is whether or not China really has 6.5% growth as reported.
Trifecta in Play
I suggest "take the under", way under. The State-Owned-Enterprise (SOE) earnings are all a mirage. The tide is going out.
By the way, expect similar action in US equities because they are equally overvalued.
Mike "Mish" Shedlock/