Shanghai Slowdown

May Chinese industrial production rose 5% Y-o-Y, weakest since 1992, and fixed asset investment growth of 5.6% is near multi-decade lows. Moreover, not only is public-sector fixed-asset investment above private sector fixed-asset investment for the first time in 15 months, but it’s rising quickly. Add weak retail sales, and soft land sales and China will be hard pressed to reach 6% growth this year, down meaningfully from 6.6% last year.