China's economy expanded at a slower pace in the second quarter as Beijing's crackdown on debt risks crimped activity, while June factory output growth weakened to a two-year low in a worrying sign that comes amid a heated trade war with the United States that threatens to knock exports.
The more timely activity indicators for last month back market views that growth is cooling, with some analysts calling for the government to take stronger measures to support the economy
"They need to slow financial deleveraging slightly and to turn their focus more on growth-supportive measures, for example increasing liquidity through (bank reserve requirement) cuts," said Iris Pang, Greater China economist at ING in Hong Kong.