More gloom than cheer over mixed economic data as China's growth slows to 6.9pc
Third-quarter GDP turns out slightly better than expected, but mixed economic data still elicits more disappointment than delight
China's economy faced a bleak outlook amid mixed data released on Monday - slightly better than expected growth but disappointing investment and output figures - fuelling calls for more intensive policy support to boost economic activity.
The third quarter's 6.9 per cent growth in gross domestic product year on year, although higher than the forecast 6.8 per cent, was the worst quarterly performance since 2009 during the global financial crisis.
The GDP data buoyed market sentiment - but only temporarily.
The Shanghai Composite Index gained 0.92 per cent shortly after the figure was released, but soon reversed into negative territory, ending down 0.14 per cent at 3,386.70. Hong Kong's Hang Seng Index traded weak for most of the course, closing up 0.04 per cent at 23,075.61.
National Bureau of Statistics spokesman Sheng Laiyun said downward pressure was here to stay until the mainland completed its economic restructuring.
"Deep winter will continue, but the poor data also adds possibilities for intensified stimulus policies," China Merchants Bank economist Liu Dongliang said.
Authorities would likely step up fiscal policy, and further cuts in interest rates and banks' reserve ratio would be imposed sooner than expected, Liu said.