China will see a lot of activity and other data next week. Industrial production is likely to slow to 4.3% year-on-year due to base effects, and the official manufacturing PMI also hinted at a contraction in manufacturing activity, contributing to the slowdown.
On the other hand, retail sales are likely to accelerate to 7.5% year-on-year due to Covid-19 lockdowns last year. The first ‘Golden Week’ after the pandemic should also favor retail sales. Finally, China is unlikely to cut MLF rates as the yuan still faces downward pressure amid expectations of “higher for longer” US rates.