SCMP reported that on October 18, China's National Bureau of Statistics (NBS) announced that the country's gross domestic product (GDP) increased by 4.6% in the third quarter, the lowest quarterly growth since the middle of last year.

In a statement, the NBS said China's economy was "generally stable with steady progress" even as it faced a "complex and severe external environment" and complicated domestic economic developments.

China's third-quarter GDP growth figure was in line with the 4.58% forecast by economists surveyed by Chinese financial data provider Wind, and lower than the 4.7% growth recorded in the second quarter.

“Although it is only a slight decline compared to the second quarter of 2024, it makes the official growth target of 5% difficult to achieve if the trend continues until the end of the year,” said Mr. Zhang Zhiwei, Chairman and Chief Economist at Pinpoint Asset Management.

“This may be why the Chinese government decided to change its policy stance and boost growth at the Politburo meeting,” Mr. Zhang added. “We are waiting for clearer fiscal stimulus measures. Details may have to wait until November, as the US election results may be a factor influencing policy direction in Beijing.”

China's economy remains sluggish despite COVID-19 restrictions being lifted from late 2022. Low consumer confidence and a sluggish property market remain drags on the world's second-largest economy.

In recent weeks, Chinese policymakers have announced a series of measures to boost the economy, including cutting mortgage rates on existing homes and allowing banks to lend more by reducing reserve requirements.

However, Beijing has yet to announce major new economic stimulus plans, which analysts and stock investors believe are needed to give the economy a major boost.

China's growth rate in the first three quarters of 2024 is 4.8%. On a quarterly basis, the economy grew 0.9% in the quarter ended September, up from 0.7% in the previous quarter.

China’s factory output rose 5.8% in the first three quarters, while retail sales rose 3.3% year-on-year. However, property investment fell 10.1% and new home sales fell 22.7%, underscoring weakness in the property sector.

Earlier this week, China reported a sharp decline in September exports, up just 2.4% in dollar terms year-on-year, down from 8.7% year-on-year growth in August. Imports were also weak, rising just 0.3% and missing expectations.