As the saying goes, things will get worse before they get better. This age-old adage very much applies to the Chinese economy today. As we show below, economic data is still deteriorating as Beijing hasn’t opened the credit spigot just yet. And if market prices are any guide, the turmoil in the real estate sector hasn’t be resolved (yet).

Below is our heatmap of key Chinese high-frequency economic indicators. The cell color is based on the percentile ranking of the data-point over a 24-month period. Red means the data is weak and at the low end of its historical range, while green denotes the opposite:


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