Chinese GDP has ground to a halt as the consumer buckles. Once we add a GDP deflator of around -0.5%, and calculate writedowns correctly, growth is even worse than it looks:
There is no obvious end in sight as Chinese household debt deflation embeds and retail ebbs away:
Net new bank lending to households fell in Q2 for both short-term and medium-to-long term loans, a sign of broad-based consumer deleveraging. Combined with still depressed NBS consumer confidence index,the latest data do not bode well for consumption trends.
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