China growth steady despite crackdown on financial risks

China growth steady despite crackdown on financial risks

China growth steady despite crackdown on financial risks

In the second quarter, GDP growth was steady at 6.9 percent year on year, flat from the first quarter, but well above the government's annual growth target of 6.5 percent.

The growth rate is well above the government's target for the year of 6.5 per cent, reflecting a firming trend in the nation's economy.

Investment in the manufacturing sector rose 5.5 percent in the first half, up 0.4 percentage points from the first five months.

Despite the strong result, the NBS said that that there are "still many unstable and uncertain factors overseas and long-term structural contradictions remain prominent at home".

The government would continue to deleverage the economy through prudent monetary policy and by reducing leverage in state-owned enterprises, Xi said. It is unclear whether the new method has been used for Monday's second quarter GDP read.

Value-added industrial output in June rose by 7.6%.

In China, the fiscal year begins on January 1.

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The latest monthly industrial output, fixed asset investment and retail sales data, also released Monday, largely were in line with the GDP data.

The higher throughput came after another month of strong crude oil imports and as top refineries prepared to cut output in the third quarter.

The NBS said that GDP for tertiary industries - predominantly services - grew by 7.7%, outpacing growth in the nation's secondary (industrial) and primary industries of 6.4% and 3.5% over the same period.

What that translates to is tighter control over the financial system and the economy, which could pose further strains as China's economy transitions to new sources of growth.

Fixed-asset investment in non-rural areas increased 8.6% in the first half of the year.

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

The ratings agency on Friday maintained its A+ rating on China with a stable outlook.

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