China Slowdown Story Has Moved Into A New Phase As Government Props Up Ailing Private Sector

State owned enterprise fixed asset investment growth was +23.5% year-over-year, the fastest since 2010, while private sector growth is making a b-line toward zero.

The last several days saw the release of the usual slue of monthly and quarterly economic stats out of China, which were mostly met with applause from the financial punditry as headline numbers beat expectations. A look under the hood, however, reveals quite a different story. The composition of growth in China again markedly deteriorated in…