David Scutt, FOREX.com APAC Market Analyst, outlines how China’s property sector slump remains the key drag on growth and the wider economy.
China’s property sector is still the biggest burden on growth. Investment fell 12.9% in the first eight months of 2025 compared with 2024, while new construction dropped nearly 20% and sales slid 7%. House prices continued to decline, offering little sign of bottoming out.
The weakness is filtering through to the wider economy. Retail sales rose just 3.4% in August, missing expectations. Industrial production slowed to 5.2%, while fixed asset investment grew only 0.5%, the weakest outside the pandemic years. Private investment contracted by 2.3%.
With growth stalling, credit demand remains soft. New bank loans totaled 590 billion yuan in August, well below forecasts. Outstanding loans grew 6.8% year on year, the lowest on record. Incremental policy steps such as subsidised loans and industry-specific measures have yet to spark a meaningful recovery.
China’s equity rally has become a crucial support for sentiment, offsetting some property-related weakness. Authorities face a delicate task of sustaining growth without triggering another boom-bust cycle in markets. As Scutt notes, investors will be watching closely to see if Beijing can hold its 5% annual growth target.
What are the major events and indicators on tap for the global economy that could charge volatility in markets and reshape deeper fundamental themes? Sign up for the updated Global Macro Calendar updated each week with a two week look ahead of the top events!
Sign Up See our financial videos hub
--- Written by Frederic Guetin, StoneX TV Producer
--- Expert: David Scutt, FOREX.com APAC Market Analyst
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future; Past performance is not indicative of future results, as the information presented is for informational purposes only and does not mean or imply that these trends are guaranteed to occur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. FOREX.com is a registered FCM and RFED with the CFTC and member of the National Futures Association (NFA # 0339826). Forex.com is a wholly owned subsidiary of Stonex Group Inc.
The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer. This content is not intended for residents of any particular country, and the information herein is not advice nor a recommendation to trade nor does it constitute an offer or solicitation to buy or sell any financial product or service, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Please refer to the Regulatory Disclosure section for entity-specific disclosures. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc. The information herein is provided for informational purposes only. This information is provided on an ‘as-is’ basis and may contain statements and opinions of the StoneX Group of companies as well as excerpts and/or information from public sources and third parties and no warranty, whether express or implied, is given as to its completeness or accuracy. Each company within the StoneX Group of companies (on its own behalf and on behalf of its directors, employees and agents) disclaims any and all liability as well as any third-party claim that may arise from the accuracy and/or completeness of the information detailed herein, as well as the use of or reliance on this information by the recipient, any member of its group or any third party.
© 2026 StoneX Group Inc. all rights reserved.
Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
The US dollar index is rising on falling volume, and volume confirmation is the test that separates a trend with buyers behind it from a corrective bounce. Matt Simpson works through what the participation behind the advance is showing.
Dollar to reflect US economic data, Central Bank minutes, inflation in Brazil, and the Middle East
US indices have led sentiment to fresh highs this past week even as the fundamental backdrop struggles to present a solid foothold. Will thin liquidity aid or hamper the swell and what does the event risk ahead propose?
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bilateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve, our financials and track record are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform to “boots-on-the-ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
