The Chinese market today didn’t show significant growth despite a number of positive macro statistics. Thus, the GDP of the second largest economy in the world has accelerated growth to 7.5% against the forecast of 7.4%, and the volume of industrial production increased by 9.2% compared to the same period of last year, which is 0.4% better than in May. At the same time, investors were disappointed by the data on slowdown in retail sales growth to 12.4%, which is 0.1% worse than expected and the fall in the housing market by 9.2%. It is the construction sector that is a major risk for the development of the Chinese economy and investors fear worsening crisis in the sector.
Growth of the Chinese market may continue in the near future, but on the market there is no significant stimulus for continuing the upward movement in the medium term. In this regard, we expect a significant correction on the Chinese stock market.