Worries about China's economy grow

<p>Kia ora,</p><p>Welcome to Monday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the international edition from Interest.co.nz.</p><p>And today we lead with news questions are deepening about the Chinese economy, and how it will extract itself from the on-going funk - or whether it can.</p><p>But first, we are now in the heart of the northern hemisphere annual vacation season. Anything happening now is reactive to the general inactivity among investors, company managers, and regulators.</p><p>The week ahead will be somewhat light for key data releases, probably the most important one being US factory orders for July. And at the end of the week, the Powell speech at the central banker shindig at Jackson Hole, WO, will be closely watched. Locally, July retail sales levels will feature (via the electronic cards version), and in Australia there is little of substance on the agenda.</p><p>In China, they released <a href="http://fec.mofcom.gov.cn/article/tjsj/ydjm/" target="_blank"><strong>foreign direct investment</strong></a> data and that remained modest in July with the main inflows coming from 'friends'. Western companies are now moving to the exits. And their central bank moves to keep the yuan value elevated for wider stability reasons means those leaving now are not getting hurt by the exchange rate</p><p>Meanwhile, China's Evergrande Group, once the country's second-largest property developer (Country Garden is now the largest), filed for bankruptcy in New York on Friday (NZT). It was a <a href="https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-15-bankruptcy-basics" target="_blank"><strong>Chapter 15 bankruptcy filing</strong></a> meaning its actually a Chinese (Hong Kong) bankruptcy, a move that protects its US assets from creditors while it works on <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2023/0816/2023081601053.pdf" target="_blank"><strong>a restructuring deal elsewhere</stro