China's economy beats outlook, grows 6.9% in Q2

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The country's GDP grew 6.9 percent in the second quarter from a year earlier, the National Bureau of Statistics said on Monday, which was also the same rate as the previous quarter.

The Chinese economy expanded at a faster pace in the second quarter, with broad measures of economic growth picking up speed.

Chinese economy witnessed a faster growth in the second quarter of this year as industrial production and consumption improved and investment continued to be strong.

"But global instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remains".

"It shows that Beijing's financial deleveraging was well-timed and carefully targeted not to have much spillover on the real economy", said Rob Subbaraman, chief economist for Asia ex-Japan at Nomura Holdings Singapore.

On a quarterly basis, the growth improved to 1.7% in the second quarter from 1.3% during the first quarter this year.

The forecast of a gradual growth slowdown due to a weakening property sector, possible moderation of domestic demand as well as uncertainties over external demand remained valid, the report said.

Dow ends at 2nd straight record ahead of bank earnings
Earnings per share were 1.82 dollars, or 1.71 dollars excluding a gain from a legal settlement, far higher than market estimates. The Nasdaq 38.03 points, or 0.61%, to 6312.47-the largest one-week point and percentage again since early December.

In China, the fiscal year begins on January 1.

Gross domestic product grew 6.9% year-on-year, the same pace of expansion as seen in the first quarter, the National Bureau of Statistics said Monday.

Growth of housing sales value also accelerated to 21.5 percent in the first six months from 18.6 percent in the first five months. A report on how - or if - the US will react could come as early as this week.

According to NBS, the service sector expanded 7.7 per cent year-on-year in the first half, outpacing a 3.5-per cent increase in primary industry and 6.4 per cent in secondary industry.

Fitch Ratings on Friday maintained its A-plus rating for the country but said its growing debt could trigger "economic and financial shocks".

Part of China's economic health in the second quarter reflected robust exports, with demand beginning to recover in Europe and particularly the United States after a long period of depressed growth.