Japan researchers say China GDP may have slowed to 5% in Q2

The Japan Center for Economic Research used the measures in the so-called Li Keqiang index and say they show GDP grew slower than the official 7%.

The "Li Keqiang index" is based on three economic indicators:

• the amount of electricity consumption,
• the volume of railway transportation
• and the balance of new medium- and long-term loans

Li Keqiang expressed doubts about the veracity of official Chinese economic data, so he used these measures back when he was head honcho in Liaoning Province.

(More here on this for those interested:

• Keqiang ker-ching
• China's GDP: Premier winks at the "Keqiang index"

Those are old pieces, but the explanation of the index is still relevant)

Back to the Japanese researchers.

• They say these indicators put China Q2 GDP at 4.8% to 6.5%
• Railway freight declined about 10% y/y
• Growth in electricity generated slowed
• The Center's estimates have been diverging from official Chinese government's GDP data since Q3 of 2013, and the divergence has grown