China's GDP Grows 6.9% in 2Q; Beijing Focuses on Financial Risks

Marco Green
July 17, 2017

Retail sales rose 10.4% in the first half of the year, up 0.1 percentage points from the first quarter's rate.

The figure, slightly better than analyst consensus, is unchanged from the previous three months' 6.9 percent expansion in gross domestic product, which was the fastest pace in more than a year, propelled by state-led investment in infrastructure projects.

China's major stock indexes recouped sharp early losses on Monday as latest growth data from the world's second largest economy surprised on the upside, buoying earnings prospects for the country's companies.

Growth in inventory floor area in the first half of the year was 9.6 percent lower than one year earlier, compared with a fall of 8.5 percent in the January-to-May period.

The National Statistics Bureau also showed coke output fell 1.4 percent in June from a year ago to 38.16 million tonnes.

Economic growth in China was steady over the second quarter of the year, official data revealed.

With risks rising in some parts of the economy due to leveraged investments and over-borrowing, officials need to carefully balance support for growth with risk controls.

The International Monetary Fund last month raised its forecast for China's economic growth this year to 6.7 percent. A report on how - or if - the USA will react could come as early as this week.

The meeting is usually overseen by Premier Li Keqiang, but this year, President Xi Jinping also addressed the conference, making it clear the main focus was to reduce financial risks. "Very little supply-side reform and restructuring have been done in the first half". While the country's debt stands at 277% of GDP, it has introduced tighter lending restrictions on banks to help rein in consumer debt and soaring house prices.

Industrial output gained 7.6 percent in June prior year beating analysts' expectation of a 6.5 percent increase.

Other reports by Click Lancashire

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