Current market perceptions of China are "thoroughly divorced" from the reality on the ground, according to the latest China Beige Book (CCB) survey, which has found that while the economy slowed in the third quarter, there are no signs of an impending growth collapse.



"In the aftermath of the stock market collapse and a surprise currency action in August, global sentiment on China has veered sharply bearish—too bearish," Leland Miller, president of CBB said.



"While we have long cautioned clients against relying on rosy official views of the Chinese economy, we believe sentiment has swung substantially too far in the opposite direction," he said.



The quarterly private sector survey, which resembles the U.S. Federal Reserve's Beige Book, is based on interviews with over 2,100 companies across the country in a variety of sectors, ranging from retail to real estate.



Corporate revenue growth, although weaker than the second quarter, actually improved over the first quarter, and was stable in on-year terms, according to CBB.



"The slowdown was concentrated in the public sector, where revenue growth slowed moderately, while the private sector saw only a slight downtick and from a higher rate of growth,' Miller said.