Goldman does China is fooked in the nicest possible way. It ain’t short-term and it ain’t getting better. CNY is going to fall.
A clear picture of weak domestic demand: Combined with muted inflation and weak credit growth, July activity data confirmed the lack of domestic demand. With a few exceptions, most indicators showed sequential decline from June to July. For housing construction, infrastructure investment and steel production, the sequential declines were double-digit.
Negative impact of property slump permeating: Property investment contracted further in July, dragging down total investment. Retail sales of property-related items such as furniture and building materials significantly underperformed other items. And real estate services fell sharply, weighing on overall service output. High-frequency data suggest property sales dipped further in early August.