China: Headline data was a mixed bag – RBC CM

Sue Trinh, Senior Currency Strategist at RBC Capital Markets, notes that the China’s headline data was a mixed bag as the industrial production increased from 6.1%y/y to 6.2% (cons: 6.1%) and retail sales surged from 10%y/y to 10.8%y/y (cons: 10.2%).

Key Quotes

“The strong retail sales number was flattered by auto sales soaring from 8.7%y/y to 13.1% due to a rush to purchase ahead of the expiry of tax incentives in December. The payback will be weaker consumption in Q1 2017.”