The data for urban Fixed Asset Investment (FAI) released overnight completed the picture of a weaker Chinese economy, where the pace of deterioration picked up significantly in October. In addition, the FAI data confirmed that the recent sharp slowdown in growth is not only due to the global credit crisis starting to take its toll on export growth. Just as important is the decline in real estate construction activity. This is to a large degree a lagged response to monetary tightening in 2007 and earlier in 2008 and the consequent sharp slowdown in real credit growth. At least we can hope that part of the weakness gradually will be reversed by recent monetary easing and the fiscal stimulus package.