Services-led slowdown, Third Plenum signals

The detailed breakdown of Q2’s weaker-than-expected GDP figures point to a broad-based slowdown in almost all parts of the service sector, leaving growth increasingly dependent on industry.

The Third Plenum doesn’t appear to have delivered the shift in reform priorities needed to address the underlying causes behind China's worsening macro imbalances. But it did signal concern about the current state of the economy and provide impetus for near-term policy support.