China's strong second-quarter GDP growth paves way for deeper reforms

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China's average per capita disposable income grew 8.8 percent year on year to 12,932 yuan (about 1,913 USA dollars) in the first half of the year, data showed Monday.

The Chinese economy expanded 6.9 percent last quarter, the same as the previous three months and better than the 6.8 percent tipped in an Agence France-Presse survey.

China's economy showed surprising resilience in the second quarter, as Beijing's efforts to rein in financial leverage and property speculation had a smaller-than-expected impact on growth.

According to the National Bureau of Statistics (NBS), China's GDP grew 6.9 per cent year-on-year while the retail sector rose 10.4 per cent in the first half of the year.

China's economic growth held steady in the latest quarter, boosted by trade and consumer spending, despite concerns about a possible impending slowdown.

The pace was slightly higher than previous market consensus of 6.8 percent and well above the government's annual target of "around 6.5 percent".

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Total social financing plus bonds, the broadest measure of credit, expanded 14.7 percent in June compared with the same month a year earlier. While China's first-half economic achievement was "hard won", more positive changes in the second half are expected, National Statistics Bureau spokesman Xing Zhihong told reporters.

Growth in both exports and imports was also higher than expected.

However, buyer demand appeared to be more resilient than expected, reinforcing analysts' views that China's property market is unlikely to suffer a hard landing as some have anxious.

"However, we must be aware that there are still many unstable and uncertain factors overseas and long-term structural contradictions remain prominent at home", Xing said.

Growth in inventory floor area in the first half of the year was 9.6 percent lower than one year earlier, compared with a fall of 8.5 percent in the January-to-May period.

Another aspect of concern for President Donald Trump is the fact that steel output hit a record high 73.23 million tons in June, the NSB said, while aluminium production rose 7.4% from the same period past year to 2.93 million tons.

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