China releases second quarter GDP data and other key indicators

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The National Bureau of Statistics (NBS) announced on Monday that GDP had reached US$5.62tn during the first six months of the year, representing an increase of 6.9 percent compared with the same period last year.

The main drivers of Chinese growth were industrial production, growing 7.6 percent in June alone, and retail sales, which climbed 11 percent.

China's economy expanded faster-than-expected in the second quarter, setting the country on course to comfortably meet its 2017 growth target and giving policymakers room to tackle big economic challenges ahead of key leadership changes later this year.

The main Asian stock indexes fell on the data, before recovering to close the day at new highs.

On a quarterly basis, GDP added 1.7 percent from 1.3 percent in the first quarter matching estimates.

That was the same as during the first quarter of 2017 but slightly better than the 6.8% pace which economists had been anticipating.

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Gross domestic product (GDP) accelerated at an annualized 6.9% in April-June, the National Bureau of Statistics said.

A survey by China's central bank in late June showed that 31.2 percent of households expect housing prices to rise in the third quarter of this year, while 46.1 percent of households tipped them to remain basically unchanged.

While the economy steams along, the government is setting a wary tone: The front page commentary in the People's Daily, said China should not only be alert to "black swan" risks that catch people off guard but also more obvious threats.

"If global demand for Chinese goods stays elevated, that will offset the curbs on growth that property and debt that the government has implemented", said Tao Wang, chief China economist at UBS. This means that investment growth has already peaked in Q1, and a softening can be expected in the coming quarters, Commerzbank reported.

Retail spending and factory output were also bright spots in the first half.

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

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