AI Data Insight
China's gross capital formation as a percentage of GDP in Q2 2026 fell to 34.0% from 38.0% in the previous quarter, confirming the continued weakness in domestic investment momentum. During the same period, China's annual GDP growth rate reached only 4.3%, lower than the market expectation of 4.5%, highlighting that the property downturn and sluggish domestic demand have offset export dividends. The market expects authorities to step up counter-cyclical adjustment policies at the July Politburo meeting to boost the economy.