Renewed COVID-related restrictions weighed on the services sector, and the slow demise of the local real estate sector hurt demand for loans and other forms of financing over the course of last month. Heading into Q4, we believe China's economy will decelerate as COVID lockdowns sporadically reappear. With activity to slow to close the year, we expect the People's Bank of China (PBoC) to further ease monetary policy and for the Chinese renminbi to weaken as a result.

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