China’s Economic Recovery Faces Risks From Property Crisis

  • Key figures on Tuesday likely to show subdued activity in July
  • Pressure is building on policymakers to add more stimulus
WATCH: Louise Loo, lead economist at Oxford Economics, discusses China’s credit data, the next steps for the PBOC and the decline in FDI.Source: Bloomberg
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China’s economic recovery is being weighed down by a worsening property slump, with the latest data likely to show little sign of a rebound in growth.

Official figures due Tuesday are expected to show only moderate increases in industrial output, retail sales and fixed-assets investment in July. The contraction in property investment likely worsened, with fears of a debt crisis at a major developer and a further decline in housing sales holding back a rebound in the sector.