China’s fixed-asset investment fell 7.2% year-on-year in the first eight months of 2026, matching market expectations and marking the steepest January-August decline since January-April 2020. The result worsened from a 6.7% fall in January-July. Property investment remained the largest drag, dropping 19.9% after a 19.2% decline through July. Infrastructure investment fell 4%, compared with 3.6% previously, while manufacturing investment declined 2.3% after a 1.7% fall. Excluding property, fixed-asset investment fell 4.2%, an improvement from the 5.7% decline recorded through July. The broader data showed a fragile recovery: August retail sales growth slowed to 0.4% year-on-year, the lowest in three months, while the unemployment rate rose to 5.3% from 5.2% in July. Industrial output accelerated to 5.2% from 4.5%, and the house price index fell 3% year-on-year, the softest decline since December 2025. The Shanghai Composite fell 0.3% to 3,875, a more than one-month low, while the Shenzhen Component rose 0.3%. The data raised concerns that growth could undershoot the government’s 4.5%-5.0% annual target for a second consecutive quarter, increasing pressure for additional stimulus.