GS China Econ Proprietary Indicators: February Please find an update of our proprietary economic indicators below. The data behind our proprietary economic indicators can be downloaded here (methodology notes available in the appendix). Source: Goldman Sachs Global Investment Research, NBS, CEIC Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to www.gs.com/research/ ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The China Current Activity Indicator (CAI) decreased to +4.7% month-on-month annualized seasonally adjusted in October from +5.9% in September, indicating a slowdown in economic activity [4] - The deterioration in CAI was primarily driven by the manufacturing sectors, suggesting challenges in this area [10] - Both manufacturing and construction growth proxies fell in October, reflecting a broader decline in economic momentum [12] - The China Financial Conditions Index (FCI) tightened further in October, mainly due to foreign exchange appreciation against a trade-weighted basket [26][31] - The investment tracker indicates stable momentum at around 3% year-on-year in Q3, suggesting some resilience in investment despite broader economic challenges [19] Summary by Relevant Sections Current Activity - The CAI fell to +4.7% in October, down from +5.9% in September, indicating a slowdown in economic activity [4] - The decline was led by manufacturing sectors, highlighting potential weaknesses in this area [10] Manufacturing and Construction - Both manufacturing and construction growth proxies experienced declines in October, signaling a broader economic slowdown [12] Financial Conditions - The FCI tightened in October, primarily driven by foreign exchange factors, indicating a more challenging financial environment [26][31] Investment Trends - The investment tracker shows stable momentum at approximately 3% year-on-year in Q3, suggesting some resilience in investment activity [19]