Strain on the country's real estate sector, which accounts for as much as 30% of China's economic output, is also a concern. Property investment by developers contracted 6.4% in the first seven months of this year, and new home prices in 70 major cities dipped for an 11th consecutive month in July.

Meanwhile, extreme heat and severe flooding is disrupting food production and feeding inflation, according to an NBS spokesperson.

Investor insight: Chinese stock markets dropped on Monday. Hong Kong's Hang Seng Index slid 0.7%, and the Shanghai Composite finished slightly lower. The yuan weakened against the US dollar. The news also weighed on US stock futures.

Readers of this newsletter know that high crude prices generated eye-popping profits for the world's biggest oil companies last quarter.

Strain on the country's real estate sector, which accounts for as much as 30% of China's economic output, is also a concern. Property investment by developers contracted 6.4% in the first seven months of this year, and new home prices in 70 major cities dipped for an 11th consecutive month in July.

Meanwhile, extreme heat and severe flooding is disrupting food production and feeding inflation, according to an NBS spokesperson.

Investor insight: Chinese stock markets dropped on Monday. Hong Kong's Hang Seng Index slid 0.7%, and the Shanghai Composite finished slightly lower. The yuan weakened against the US dollar. The news also weighed on US stock futures.

Readers of this newsletter know that high crude prices generated eye-popping profits for the world's biggest oil companies last quarter.