China's activity growth likely to improve

China's housing investment should start to see a slightly more pronounced recovery after four months of sales rebounds. Nominal retail sales might have improved as well given a higher inflation rate.

"China's activity growth is expected to have recovered in August. Industrial production growth is expected to tick up to 6.6% yoy from 6.0% yoy, mostly thanks to a weaker base. Fixed asset investment likely grew 13% yoy in August, vs 10.3% yoy in July", says Societe Generale. 

This would lift the yearto-date growth to 11.4% yoy from 11.2% yoy. Again, positive base effects probably explain part of the acceleration, while infrastructure investment growth should have received solid support from bank credit and government measures.