China's activity growth likely to have improved in July

The sharp sell-off in China's domestic equity market in early June should have some negative impact on consumer confidence and durable goods consumption.

"China's activity growth is expected to improve again in July. Industrial production growth is expected to tick up to 6.9% yoy from 6.8% yoy. Fixed asset investment likely grew 13.5% yoy in July, compared with 11.4% yoy in June", says Societe Generale. 

This would lift the year-to-date growth to 11.8% yoy from 11.4% yoy. Positive base effects probably explained part of the acceleration, whileinfrastructure investment growth should have received solid support from bank credit and government pushes. 

"Housing investment should start to see more notable recovery after three months of sales rebounds. However, nominal retail sales might have softened somewhat despite a higher inflation rate", added Societe Generale.