China growth slows to 4.3% in Q2; Thames Water has funds to survive to year end
9 reported2 unconfirmed
According to a single-source report from The Guardian, China’s economy expanded at its slowest pace in more than three years in the second quarter of 2026, with gross domestic product growth slowing to 4.3% between April and June from the first quarter’s 5%. The figure missed forecasts and landed below the lower end of China’s 4.5% to 5% full-year target. The data adds pressure on Beijing to deliver more stimulus, though analysts say a closely watched Politburo meeting at the end of the month may not make big announcements due to concerns over ballooning debt. Separately, Thames Water was reported to have funds to survive to the year end, though no further details on its financial position were provided in the article. The report also covered a £400m shareholder return by Barratt Redrow, a slowdown at UK discount chain B&M, and comments from the FCA CEO on motor finance compensation and claims management regulation.
What’s reported
China’s GDP growth slowed to 4.3% in Q2 2026 from 5% in Q1, the slowest pace in more than three years.
The figure missed forecasts and was below the lower end of China’s 4.5% to 5% full-year target.
Retail sales rose 1% in June; industrial output expanded 5.3%.
The economy grew 4.7% in the first six months of 2026, within target.
Morgan Stanley cut its full-year growth forecast to 4.6% from 4.8%.
Thames Water was reported to have funds to survive to the year end.
Barratt Redrow announced a £400m return to shareholders via a £386m share buyback and £14m dividend.
B&M’s like-for-like sales fell 2.3% year on year in the 13 weeks to 27 June.
The FCA CEO called for anti-money laundering regulation for claims management companies.
Open questions
What specific measures, if any, the Politburo will announce at its end-of-month meeting.
The exact financial position of Thames Water beyond having funds to survive to year end.
Key figures
Gary Channon, chief investment officer and founder of Phoenix Asset Management
Nikhil Rathi, CEO of the Financial Conduct Authority
Jane Hou, business owner in eastern China
Zhiwei Zhang, chief economist at Pinpoint Asset Management
Tjeerd Jegen, chief executive of B&M
Dan Coatsworth, head of markets at AJ Bell
Sources: The Guardian
