Risks for growth rise as manufacturing contracts

Flagging industrial production is adding more downside risks to the Chinese economy and deterring international investors from making fresh commitments.

Economists have indicated that industrial output growth may slow further in August and even fall below the three-month low of 6 percent year-on-year seen in July.

The recent explosions at the Tianjin port and the large-scale factory closures around Beijing ahead of the parade to celebrate the victory of World War II have disrupted industrial activities in the summer.