China’s August macroeconomic data generally continued the disappointing trend from July, with headline industrial value-added growth hitting a new post-1990 low at 4.4% y/y. Beijing faces difficult policy dilemmas given cyclical weakness in the economy, but still-rising pork and property prices. Corporate credit growth surprised on the high side in August, but this may have been a product of banks front-loading long-term loans in anticipation of falling interest rates.
