China economic growth steady in second quarter

China posted a trade surplus of $42.77 billion in June slightly above analyst forecasts for a surplus of $42.44 billion. Reuters

China posted a trade surplus of $42.77 billion in June slightly above analyst forecasts for a surplus of $42.44 billion. Reuters

Economic growth in China was steady over the second quarter of the year, official data revealed.

China's economy grew at its weakest pace in 26 years during 2016, but other data released on Monday added to the picture of rebounding growth for the Chinese economy.

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

"Everything shows that the economy is recovering and growing compared with a year ago", Huang Weiping, an economics professor at Renmin University, told dpa.

The National Statistics Bureau also showed coke output fell 1.4 percent in June from a year ago to 38.16 million tonnes.

Separately, the NBS reported a 7.6% spike in annual industrial production in June, which was well above May's 6.5% expansion. It is unclear whether the new method has been used for Monday's second quarter GDP read.

In the first half of 2017, the economy advanced 6.9%.

Debt-fuelled investment in infrastructure and real estate has underpinned China's growth for years but warnings of a potential financial crisis have spurred Beijing to clamp down.

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.

The keyword, "risk", appeared the most in the meeting notes, mentioned 31 times, while "regulation" was mentioned 28 times, according to an analysis by Credit Suisse. "The total debt ratio of Chinese enterprises has reached 156 percent of GDP, which might be the highest in the world".

"It is therefore highly probable that authorities will continue to use the resources and policy tools at their disposal to ensure a positive economic outcome", Citibank analysts said over the weekend.

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

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