The release last week of softer than expected Chinese growth data triggered a fresh bout of speculation that the country’s economy could be heading for a “hard landing”. But should investors worry?

David Shairp at JPMorgan Asset Management says that while there are signs that China is heading for a soft landing, it is too soon to sound the all-clear.

“The Achilles heel of this economy – ironically – is the trade sector,” he says. “For an economy that has developed strongly over the past three decades, thanks to export-led industrialisation, the main risk to a soft landing now lies in a sharper export slowdown. There are some tentative signs that demand is recovering, with the PMI orders data ticking up, declines in inventories of raw materials and bank credit improving.