China's Economic Momentum Falters as Industrial Output, Retail Sales and Property Market Data Confirm Slowdown

Li Chen
15 Aug, 2025
Hong Kong

China and Hong Kong indexes turned lower after the latest economic data failed to sway market sentiment.

The Hang Seng index fell 1.3%, and the CSI 300 index edged higher a fraction as China’s domestic consumption weakens and industrial output loses momentum.

China’s retail sales growth slowed to 3.7% in July from 4.8% in the previous month, according to the data released by the National Bureau of Statistics on Friday.

The key measure of consumer spending showed signs of economic strain, despite the top policymakers reiterating their goals of expanding domestic demand.

China’s trade-in program has supported the purchase of household appliances, and Beijing has allocated 231 billion yuan from the sale of ultra-long special treasury bonds this year.

As of July 16, the program has generated 1.6 trillion, or about $223 billion, in sales, according to the official data released by the government agencies.

Industrial output growth slowed to an increase of 5.7% in July from 6.8% in June, and fixed-asset investment in the first seven months to July slowed to 1.6% from 2.8% in the first half of 2025.

Economists were quick to lower estimates for GDP growth in the second half after weaker-than-expected economic data. 

Property investments continue to slow down as new home prices fall and consumer confidence remains weak. 

Property investment declined 12% in the period from January to July, from the fall of 11.2% in the first half of 2025. 

In addition, the agency said new home sales by floor area declined by 4% in the year-to-July compared to the fall of 3.5% in the first half. 

A separate report by the NBS showed new home prices declined for the 25th month in a row in July. 

New home prices in 70 cities decreased 2.8% in July, easing from a 3.2% fall in the previous month. 

Prices in Beijing declined 3.6% compared to 4.1%, in Guangzhou eased 4.6% compared to 5.1%, and in Shenzhen fell 2.2% compared to 2.5%, but in Shanghai rose 6.1% compared to 6.0% in the previous month, respectively. 

The jobless rate in the urban areas inched higher to 5.2% in July from 5.0% in June, according to the official data released by the NBS.

China's jobless data are viewed with deep skepticism, as several private estimates show the unemployment rate as high as 9%. 

 

China Indexes and Stocks

The Hang Seng Index decreased 1.3% to 25,181.88, and the CSI 300 index edged higher 0.03% to 4,174.64.

JD.com, Inc. dropped 3.1% to HK $120.20, and the e-commerce platform operator reported a 51% decline in profit in the second quarter. 

Geely Automobile Holdings Ltd. edged down 2.1% to HK $18.56 after the company reported a 14% decline in profit in the first half. 

Guangzhou Innogen Pharmaceutical Group soared to HK $55.30 after the company priced its public offering at HK $18.68 per share. 

The diabetes and other metabolic diseases-focused pharmaceutical company sold a total of 36.55 million shares and listed its shares on the Hong Kong Stock Exchange.