The GDP of China grew 1.6% in Q4 2015, as compared with 1.8% growth recorded in Q2 and Q3, and lower than median forecast of a rise of 1.8%. China's annual growth is now at 6.8%, as compared with 6.9% in Q3.

A greater momentum is continued to be provided by the service sector, while the tertiary sector's annual growth was at 8.3% y/y in Q4 2015, the same as in Q3 and more than Q4 2014's 7.8% y/y. Meanwhile, secondary industry growth recorded the same growth as in Q3 and Q2, but was lower than the 7.3% y/y growth recorded in Q4 2014 and 7.5% y/y in Q2 2014. Currently, the services sector is the main driver for growth, with the momentum of tertiary sector being strong at 11.7% y/y as compared with the secondary sector that is at 1% y/y.

China's nominal growth in year to date terms is likely to have slowed more to 6.4% y/y in Q4 from 6.6% y/y in Q3. This is equal to a 5.8% growth in Q4 from 6.2% growth recorded in Q3 and 7.1% in Q2, in through the year terms. In nominal terms, the slowdown of momentum is depressing, highlighting that there is a requirement for further policy accommodation to halt the weakness in investment and help continued momentum in services sector.