Key Highlights from Last Trading Session (9/15) :

1. China's retail sales grew faster than expected in August, with a 4.6% year-on-year increase, driven by the catering industry (12.4% growth), cosmetics, communication equipment, jewelry, and furniture (9.7%, 8.5%, 7.2%, and 4.8% growth, respectively). Online retail sales growth slowed to 6.1% from previous months' double-digit growth, indicating a potential slowdown in the online retail industry and needs new catalysts for growth.

The Caixin Manufacturing PMI returned to expansion with a 51 reading after falling to 49.2 in July. The mining industry grew by just 2.3%, but output is expected to increase in September due to inventory restocking, firmer global metals prices, and Beijing's looser monetary policy to support the real estate market.

Huawei is a recognized leader in 5G technology and has helped China develop the world's most expansive and complete 5G network. A fully functioning 5G network opens up new applications for civilian and military use, including driverless vehicles, smart cities, and real-time AI monitoring. If confirmed, it would deal a blow to Washington’s efforts to wean the West of Chinese technology.

Zambia's copper industry (70% of its product and 60% of its export) and China's consumption of half of global copper output make this agreement significant. China's yuan surpassed the US dollar in China's bilateral trade for the first time in the second quarter, and the trend of de-dollarization is gaining strength.

This is due to weak economic growth impacting homebuyer spending and expected contraction in sales (5% fall over the next 6-12 months). The downgrade makes offshore debt more costly for mainland developers, which will need to look inward for funding to get them through these difficult times. Beijing's supportive policies may have a short-lived impact, but moves to increase liquidity, remove purchase restrictions in key cities, and lower downpayment requirements for new homebuyers may already be showing signs of improvement. Declines in contracted sales for top developers are abating, and ING reports improvement in demand in some cities.