China's Macroeconomic Data Confirm Slowing Consumer and Business Activities

Li Chen
15 Sep, 2025
Hong Kong

China stock indexes gained on Monday, and investors reviewed the latest batch of economic updates. 

The Hang Seng Index increased 0.2%, and the CSI 300 index increased 0.8%, and investors turned cautious after a mixed batch of economic data for August was released by the National Bureau of Statistics. 

Retail sales increased 3.4% from a year ago, slower than 3.7% in July, as the effect of the government's trade-in program for household goods faded. 

Industrial output increased 5.2% in August, compared to 5.7% in July, as export growth slowed after the U.S. shipments plunged following months of front-loading ahead of a sharp escalation in tariffs. 

Fixed-asset investment growth slowed amid persistent weakness in the residential housing market and receding growth in exports. 

Fixed-asset investment from this year to August eased to 0.5% from 1.2% in the seven-month period to July, as domestic economic growth stalled and exports weakened. 

Property investment declined 12.9% in the first eight months of 2025 from 12.0% in the period between January and July. 

New home sales by floor area declined 4.7% in the first eight months to August compared to a fall of 4.0% in the period to July. 

Moreover, new home prices across 70 of the largest metropolitan areas declined 2.5% from a year ago in August, compared to an annual fall of 2.8% in the previous month. 

Home prices declined for the 26th consecutive month in August, but the pace of decrease was the slowest since March 2024. 

The annual home price decline in Beijing accelerated to 3.5% from 3.6% in the previous month, in Shenzhen to 2.7% from 2.2%, and in Chongqing to 2.4% from 2.1%. 

However, new home prices rose in Shanghai at a slower annual pace of 5.9% compared to the 6.1% pace in July.

The persistent demand weakness was driven by weak consumer confidence and deteriorating job market conditions.

The overall urban jobless rate in August inched higher to 5.3% from 5.2% in the previous month, as medium- and small-scale manufacturing businesses continued their expansion overseas.

 

China Indexes and Stocks 

The Hang Seng Index added 0.2% to 26,450.01, and the CSI 300 index advanced 0.8% to 4,558.95. 

Alibaba Group Holding increased 3.1% to HK$155.60, Tencent Holdings decreased 0.3% to HK$642.0, and Meituan advanced 0.6% to HK$97.10. 

Li Auto jumped 5% to HK$98.05, BYD increased 4.4% to HK¥100.0, and Xpeng Inc. gained 2.5% to $83.35.