China's economic slowdown is deepening: China's GDP grew just +4.3% YoY in Q2 2026, the slowest pace since Q4 2022 and below the government's official target range of +4.5% to +5.0%. This followed +5.0% expansion in Q1, bringing first-half growth of the year to +4.7% YoY. Furthermore, fixed-asset investment fell -5.7% YoY in the H1, worsening from a -4.1% decline in the first 5 months. The decline was driven by property investment plunging -18%, the largest drop on record dating back to 1992. At the same time, retail sales increased +1% YoY in June after a -0.6% decline in May, while auto purchases dropped more than -16%. Weakness is spreading across the world’s 2nd-largest economy.