China Retail Sales Miss Forecast, Growth Concerns Resurface; AUD/USD and Hang Seng Retreat
By Bob Mason
Updated: September 15, 2025, 02:55 GMT
In August 2025, China’s retail sales did not meet the forecast. Sales grew by 3.4% year-on-year in August. The expected growth was 3.8%, and July had seen a rise of 3.7%. This gap in consumer spending adds worry about the strength of China’s economy.
Unemployment rose in June, moving from 5.2% in July to 5.3%. The rise in joblessness makes the labor market seem weaker. This trend may lower consumer trust and spending, which are key to the economy.
Housing prices have dropped for four months in a row. Used home prices fell 0.58% from the previous month, a larger drop than in July. New home sales also fell. Year-on-year, house prices decreased by 2.5% in August. Although this is a slight improvement from July’s 2.8% drop, it still worries market watchers. Stocks in the real estate field felt the impact, with the Hang Seng Mainland Properties Index falling by 1.25% during early trading on Monday.
Industrial output grew at 5.2% year-on-year in August. This is slower than July’s 5.7% and below the expected 5.8%. Export performance also slowed, dropping from 7.2% in July to 4.4% in August amid tariff effects.
Investors acted quickly on the news. The Hang Seng Index fell to 26,420 on September 15 before a small recovery to 26,450. The Australian dollar went down against the US dollar; AUD/USD dropped from 0.66584 to 0.66551, then bounced back slightly to 0.66552. US-China trade tensions add to the doubt. Trade talks picked up briskly in Madrid. The talks cover tariffs and issues including TikTok’s future. This situation adds more uncertainty for investors.
Looking ahead, China faces hard challenges in reaching its 5% GDP growth target for 2025. Weak consumption, a stressed labor market, and lower exports all work against this goal. Market watchers now keep a close eye on policy steps in housing, spending, and jobs. At the same time, the path of US-China trade talks stays key. Progress on tariffs may bring needed support to local markets while rising disputes may worsen the challenges.
Investors and traders are urged to keep a careful view given the latest news and global developments.
About the Author
Bob Mason brings over 28 years of experience in the financial sector. He has worked with global rating agencies and multinational banks. His work centers on currencies, commodities, alternative asset classes, and equities, with a focus on markets in Europe and Asia.
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