The full extent of China’s economic slowdown is set to be laid bare this week as corporate earnings reports are forecast to log poor performance and companies are set to downgrade outlooks, particularly in sectors with heavy exposure to the struggling real estate industry.Second-quarter results come as a worsening liquidity crisis among property developers and shaky local government finances compound investor doubts that Beijing will deliver stimulus big enough to put the world’s second-largest economy back on track.

Earnings will also provide vital data points for global markets, as China’s publication of economic statistics comes under greater scrutiny following Beijing’s decision this month to halt the release of data on youth unemployment.

“For the next week, we’ll likely see less encouraging numbers coming out of China in terms of results,” said Kinger Lau, chief China equity strategist at Goldman Sachs, which recently lowered its full-year forecast for earnings per share growth to 11 per cent from 14 per cent.