China growth steady despite crackdown on financial risks

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Deducting inflation, the growth was 7.3 percent, exceeding the country's GDP growth of 6.9 percent for January-June, according to data from the National Bureau of Statistics (NBS).

Despite an expected deceleration in the rate of growth, senior officials, nonetheless, have suggested in recent months that China could easily meet this year's GDP growth target of around 6.5 percent.

Economists polled by Reuters on average had expected 6.8 percent growth in the April to June period against the same time a year ago, compared to the first quarter's 6.9 percent.

On a quarterly basis, China's growth improved to 1.7% in Q2 compared to a year ago.

Thus, China managed to exceed its target of 6.5 percent growth, set by the government for 2017.

The robust numbers kept world shares near a record high and briefly helped China's major stock indexes recoup earlier losses.

Chinese authorities release a raft of economic data today, including GDP growth, industrial output and retail sales.

More news: China releases second quarter GDP data and other key indicators

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.

So far, this monetary tightening has not affected actual progress with private investment picking up led by New Economy parts of China which is showing great development in the tech side translating into strong growth.

However, analysts say the central bank is likely to sit tight for now.

The stronger growth also means officials will have more room to address the growing debt problem, as China continues to place controlling risk and deleveraging at the forefront of financial policy this year.

"The national economy performed within an appropriate range with more visible good momentum and achieved steady growth, rise in employment, stable prices, income growth and optimizing structures", said the NBS.

The factory output rose 7.6% in the month of June compared to a year earlier, recording the fastest growth in the past three months, whereas fixed-asset investment increased 8.6% in the first half of this year. The trade surplus widened from $US40.8 billion in May to $US42.8 billion in June.

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