While global markets seem spooked by the new evidence that the slowdown in China's economy is gathering pace, Chinese policy-makers appear to be digging in further.

Just this week, they have ordered banks to bring a huge volume of off-balance sheet loans - perhaps as much Rmb2300bn - back onto their books, which could hamper their ability to lend over the next 18 months. And they have announced the closure of facilities at more than 2000 companies because of inefficient use of energy. Premier Wen Jiabao recently described the government's energy efficiency targets as “a red line that should not be compromised”.

But there is one chink in the armour. The Chinese central bank set the daily reference point for the currency 0.36 per cent weaker against the US dollar than its close on Wednesday - which might not seem like much but is a significant depreciation in the context of China's glacial exchange rate. In yesterday's trading, it fell 0.15 per cent to Rmb6.7851 to the dollar.