According to latest data available, China's Industrial profit dropped by 4.7% in December from a year ago. It had fallen 1.4% in November and record 8.8% in August. Latest GDP reading shows, economy grew at 6.9% in 2015, slowest pace in more than two decades.
In 2016, market is facing heavy turmoil due to China's economic weakness, struggle to stabilize its currency Yuan against Dollar. This year, few weeks back, spread between offshore and onshore Yuan reached record high above 2%, before PBoC intervened in offshore Hong Kong market and drain liquidity via state run banks. China's stock market dropped -0.5% today, after dropping more than 6% yesterday.
With today's move, China's benchmark Shanghai stock index is down more than 23% this year so far. In December, China's foreign exchange reserve dropped by record $107 billion, bringing the annual drop to $513 billion in 2015.
Rail freight volume, which is good gauge of China's economy, has fallen more than 11% last year, pointing to prevalent weakness in the economy.
We, at FxWirePro, firmly believes China's economy to weaker further in 2016 and its massive mountain of debt bubble to show signs of meltdown.
