Economy

China reports 6.9% second-quarter GDP growth on year, topping expectations

China reports 6.9% second-quarter GDP growth on year, topping expectations

China's economy grew 6.9 percent in the second quarter from a year earlier, buoyed by strong consumption and exports, despite tightening financial conditions, official data showed Monday.

Industrial output for June grew by 7.6%, well above the forecast 6.5%.

Beijing has set a growth target of around 6.5 percent for 2017, a tad lower from 6.7 percent in 2016, which was the country's lowest rate in 26 years.

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

In terms of quarterly rates of change, GDP picked up from 1.3% to 1.7%.

The economy remains on track to meet the government's growth target of about 6.5% this year.

The economy expanded by 6.9% in the second quarter, unchanged from the first quarter, according to figures released on Monday by the National Bureau of Statistics.

The quarterly pace came up from 6.7 percent for the first three quarters of 2016 and 6.8 percent for the final quarter of a year ago.

Forecasters expect economic growth to cool later this year as those credit controls take hold, depressing investment.

At a national financial work conference on Saturday, Chinese President Xi Jinping called for stronger financial regulation to contain risks.

Nonetheless, according to the research house's own China Activity Proxy, which was created to give more reliable readings, Chinese GDP was in fact little changed in the second quarter, slowing from a 6.5% pace to 6.3%. "Very little supply-side reform and restructuring have been done in the first half".

"It is encouraging for global growth as well because China is the second largest economy on the planet".

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.

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