China October PMIs point to cooling economic momentum, growth target at risk

China's economy lost further momentum heading into the fourth quarter as a cooling property market weighed on activity and export demand softened, surveys showed on Monday, putting Beijing's official growth target for the year at even greater risk. Analysts had already expected full-year growth to miss the government's full-year target of around 7.5 percent, but many thought there may be some signs of stabilization late in the year after a flurry of stimulus measures. Instead, the surveys showed demand at home and abroad continued to cool and the labor market remained under stress, while adding to concerns that many companies are being starved of credit as banks grow more reluctant to lend. "Growth momentum is slowing going into the fourth quarter," said Kevin Lai, senior economist at Daiwa Capital Markets in Hong Kong.

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