China economic growth drops to five-year low of 7.3pc

The mainland economy ran at its slowest pace in five years in the third quarter, and a further downturn in the sagging property sector has put the government's full-year growth target of 7.5 per cent at risk.

The 7.3 per cent year-on-year growth in the third quarter, while the slowest since the depths of the global financial crisis in early 2009, was broadly in line with market expectations, cementing the view that government policies will stay accommodative to support growth through the rest of this year.

Meanwhile, signs of recovery outside the property sector - growth in industrial output accelerated to 8 per cent in September from August's 6.9 per cent - mean few economists anticipate an outright stimulus package.

Instead, they see easing steps adopted so far by Beijing - including relaxations of restrictions on homebuyers and credit injections into selected banks - being extended to help build growth momentum in the final quarter.

"The worst period for economic operation may have fallen in July and August, while monthly figures showed growth had rebounded last month," HSBC economist Ma Xiaoping told the South China Morning Post. "However, property investment remains the biggest downside risk in the economy."

The data sent the CSI 300 index of top shares in Shanghai and Shenzhen down 0.9 per cent.

The government has pursued targeted measures to spur growth, eschewing a repeat of the 4 trillion yuan stimulus injected into the economy in 2009, which economists largely blame for inflating the housing bubble Beijing has battled since.