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

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

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

"We expect GDP growth to trend down in the second half of 2017 on slowing property sales and tight liquidity", he said. "Looking ahead, uncertainty remains on investment and trade".

That follows Moody's decision in May to downgrade China for the first time in nearly three decades on concerns over its ballooning credit and slowing growth.

The growth only proves the strength of China's economy despite policy makers' efforts to limit extreme and risky borrowing which causes a sluggish advancement in money supply.

The ChiNext, the start-up board at the Shenzhen Stock Exchange, was down nearly 5 percent on the day, but recovered somewhat as trade continued.

Communist leaders are eager to keep economic conditions steady as they head into a ruling party congress later this year at which President Xi Jinping is due to be named to a second five-year term as leader.

Investment grew 8.6 percent year-on-year in the first six months, down 0.6 percentage point from the first quarter.

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One US official said it is likely the Chinese spy ship was near Alaska to keep tabs on the missile defense test. The surplus with the United States was China's largest since October 2015.

But most analysts agree that the upswing may not last for the rest of the year.

Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank, shares a similar view, noting in early July that "elevated steel mill margins and abundant spare capacity should provide the impetus for a short-term rally in iron ore prices".

Economist Craig James said that based on the data, easing and tightening are really not necessary since inflationary pressures are very much contained therefore PBOC should just remain to be observant.

Craig James, chief economist at Commonwealth Securities in Sydney believes though that measures to be taken by the central bank will not be so severe.

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, according to the NBS.

Meanwhile, data on Monday, which showed China's steel output hit a record in June, comes amid an investigation by the Trump administration into China's exports of steel and other metals.

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