July data suggest weaking Chinese economy

Despite a burst of government stimulus, the Chinese economy showed further signs of softening in July, Reuters reported, citing official data released on Wednesday. This suggests more policy support may be needed to keep growth on track as a property downturn worsens. The biggest surprise came from credit and financing figures where the amount of cash flowing into China tumbled to a near six-year low in July of RMB273.1 billion (US$44.34 billion). The central bank seemingly downplayed the drop but the dour news rattled some economists who are worried about demand in the property sector and the willingness of banks to lend.