Expectations grow of further policy easing

Market expectations of the central bank adopting an easing policy are rising, after China's industrial output growth cooled in July, although the monetary authority has repeatedly confirmed its cautious stance since the third quarter, analysts said.

Many economists predicted that growth downside risks will rise, amid subdued global demand and the renewed escalation of US-China trade tensions, especially if policymakers do not step up policy easing.

The nation's money and credit data in July surprised the market, following gloomy industrial production data which also indicated weaker economic growth momentum at the beginning of the second half of this year.