Market Highlight 04.08.2026

Manufacturing activity at Chinese factories showed fresh signs of weakness, posing a risk of slower GDP growth, although the deterioration does not yet appear severe enough to prompt the Government to introduce major new economic stimulus packages. According to a report released on Monday, China’s manufacturing activity expanded at a slower pace in July than in the previous month. This followed the manufacturing purchasing managers’ index released last Friday, which showed that activity in the sector contracted in July for the first time in 5 months. Some analyses suggested that adverse weather conditions last month contributed to weaker manufacturing activity. Sluggish industrial production has further intensified the challenges facing China’s economy. The world’s second-largest economy after the U.S has recently been affected by weak consumer demand and declining investment. Gross domestic product (GDP) grew by only +4,3% in Q2, the slowest pace since 2022.

However, Beijing does not yet appear to have plans to deploy measures aimed at stimulating growth, such as significantly expanding social welfare spending or increasing support for the struggling property sector. At the Politburo’s meeting in late July, senior leaders emphasized the need to make full use of existing policies and indicated that some support measures would be introduced, but provided no specific timeline. China’s economy has shown mixed signals so far this year, with strong export activity and more advanced technology adoption, while domestic spending has weakened and the property market has remained sluggish.

Interbank USD/VND fell by VND 20 yesterday to 26.280. The effective daily ceiling was raised sharply to 26.625.

Please contact the nearest Asia Commercial Joint Stock Bank's branch to receive information and consultancy if you are in need of making any foreign exchange and derivatives transactions.

Asia Commercial Joint Stock Bank assumes no responsibility or liability for any purpose of reference or using the information provided by this newsletter.

Directly contact us to receive market news and consultancy on foreign exchange products and derivatives:

- Financial Markets Division – Email: ktttc@acb.com.vn ; or

- Mr. Khanh Hoang (Financial Markets Senior Analyst) – Email: hoangnk@acb.com.vn