Global Financial Crisis and China

economic growth: New loans likely fell sharply from July, while manufacturers had to cut prices more deeply to win business, according to Euro News. The downbeat data will raise the chances that annual economic growth may dip below 7 percent in the third quarter for the first time since the global financial crisis, as demand weakens at home and abroad. While industrial output may have picked up last month, China exports and imports likely continued to shrink and growth in fixed-asset investment is languishing near multi-year lows, a Reuters poll showed. Fears that China may be at risk of a hard landing that would jeopardise the global economy have grown in recent weeks after a series of grim factory activity surveys. Tao Wang, China economist at UBS in Hong Kong, said some August data may not seem as bad on the surface as those in July when compared with a year earlier but will still point to a loss of economic momentum over the summer. The government is also still struggling to stabilise the yuan after its surprise devaluation of the currency on Aug. 11 and has been unable to halt a stock market rout that has seen the country share indexes plunge 40 percent since mid-June. (news.financializer.com). As reported in the news.