China's economic outlook

China's GDP growth rate disappointed in first three quarters of 2015 as it grew below its potential level. Exports, one of the major components of the China's economy are now contracting.

Heavy industrial capacity and mining investment both have recorded slow growth rate in the year. Coal mining and ferrous metals smelting are among the losing momentum. Similarly, real estate activity and heavy industrial sector are also continue to struggle

The heavy industrial sector continues to struggle. The proportion of industrial firms making losses remains historically high; the demand for basic inputs consumed by construction has deteriorated; as a result excess capacity is looking increasingly pronounced in some sub-sectors; and producer prices continue to decline, as they have done since early 2012.

Commodity prices exhibited considerable softness during the first half of 2015, following the last year's performance. Though the September quarter saw stability emerge in some markets, a new downtrend seems to be emerging, says Westpac. Moreover, increase in supply mount pressure on price level in various sectors to fall.