CHINA'S economic growth of 6.9 per cent last quarter was better than the market consensus of 6.8 per cent, but its outlook is still poor, according to Maybank Kim Eng Securities (Thailand).
"Seeing the number 6 for the first time since the 6.2-per-cent growth in the previous global financial crisis is not a good picture," Tim Leelahaphan, an economist and assistant vice president of the research department, said yesterday.
"Since China's numbers are still bad, there is more room for further easing.
"We now expect another RRR [reserve requirement ratio] cut around the end of the year along with another slash of deposit and lending rates," he said.
The year-on-year growth of China's gross domestic product in the third quarter was below Beijing's 7-per-cent target.
Earlier manufacturing data had suggested that the sector would continue to contract in September.
China's imports shrank by 20.4 per cent last month from the same month in 2014 because of the drop in commodity prices and weaker domestic and global demand.
China's exports also fell by 3.7 per cent to US$205.6 billion, leaving a trade surplus of $60.34 billion in September.
Chirathep Senivongs Na Ayudhya, spokesman of the Bank of Thailand, said the slight slip in China's supply-side GDP growth from 7 per cent in the second quarter to 6.9 per cent in the third quarter was as expected by the central bank.
The dip reflects the continuous slowdown in China's economic activities, especially in investments, which has led to the slowdown in manufacturing, he said.
In the coming period, the lower-than-expected income of the Chinese government will further crimp its ability to invest.
The large stock of completely built houses will continue to contribute to the slowdown in China's real-estate industry.
Manufacturing will still have excess capacity, which will continue to temper manufacturers' intention to invest.
China's money markets will continue to fluctuate, Chirathep said.