USD/CNH Steadies, Weaker Equities/Property Concerns Offsetting Earlier Data Beats

USD/CNH has climbed off session lows in recent dealings. After getting just under 7.3050, we last tracked just above 7.3100. We are still off earlier highs near 7.3275 and still +0.20% higher in CNH terms for the session. Spot USD/CNY still sits lwoer, the pair last near 7.3040.

• The better than expected Q3 GDP print was welcomed by the market, likewise in terms of the better retail sales y/y outcome and steady IP growth. Still, BBG notes that growth in both IP and retail sales slowed in the month of September versus August, which raises some concerns over momentum into Q4.
• The property side also remains weak, with investment off -9.1% ytd y/y, with new construction and funds for property development remaining weak.
• Local equities are around session lows, with the CSI 300 off nearly 0.60%. The property sub-index making fresh cyclical lows. The above data prints not helping, while a potential Country Garden dollar bond default is also a drag.
• At this stage North bound stock connect flows are tracking negatively (-1.61bn yuan) after yesterday's 3bn yuan in outflows.
• Also note the China MoF will issue additional yuan bonds in Hong Kong (16bn). See this BBG link.