China braces for sluggish Q2 under weight of U.S. Trade tensions

China’s GDP growth is expected to be 5.1% in Q2, a decline from 5.4% in Q1 due to trade tensions and a property slump, influencing investor sentiment.

Morgan Stanley forecasts that Q3 growth may fall to 4.5% or lower, leading to expectations for a fiscal stimulus package worth 500 billion to 1 trillion yuan from Beijing to support the economy.