China’s Q2 macroeconomic data showed an economy continuing to decelerate under pressure from tightening credit conditions and weakening corporate investment and capital expenditures, although GDP growth ticked down only slightly to 6.7% y/y. June credit data showed continued weakness in shadow banking activities, with the sharpest drop in non-loan credit in history. Imports remained resilient even outside of commodities, although there were signs of front-loading trade activity ahead of the implementation of tariffs.
