China's Downtrend Continues

Data released Thursday night shows a marked downtrend in place in China from 2010 on GDP, Fixed Asset Investment, Industrial Production, and from 2008 on Retail Sales, as shown on the graphs below. In fact, the numbers for Fixed Asset Investment and Retail Sales are lower than the lows in 2009.

My only conclusion from these is that China has been in, and is still in, a period of contraction...there are no signs that China will lead the world out of a slowdown in growth.

The Daily chart below of the Shanghai Index shows that price is trading in a long-term downtrend near three-year lows and is still trading under the bearish influences of a moving average "Death Cross" formation...a reflection of China's drop in output and consumption during that period.