Capital investment by Chinese firms has ground to its slowest pace in three years, as a weakening economy, tight credit and prolonged trade war with the United States dent sales growth and cash reserves, a Reuters analysis showed.
Revenue grew 6.7%, the weakest in at least three years – the earliest period for which data from a comparable number of firms is available – while net profit rose 7.8% versus nearly 22% two years earlier.
Interestingly the article ends as follows:
Yet while earnings reports indicate a slowdown, growth in factory activity neared a three-year high in November, reinforcing upbeat government data released over the weekend.
My question is where people expecting 22% growth to go on forever?