China's economy grows 6.9% in second quarter of 2017, beats estimates

China's economy grows 6.9% in second quarter of 2017, beats estimates

Economists polled by Reuters on average had expected 6.8 percent growth in the April to June period against the same time past year, compared to the first quarter's 6.9 percent.

There is fear that growing debt in the manufacturing sector could combine with overcapacity to drag the economy down, and there are also worries that large cities are now in the middle of a property bubble.

The government's growth target is 6.5 percent "or higher if possible".

The rate was the same as in the first three months of this year, said the National Bureau of Statistics on Monday.

The bank has raised its 2017 annual GDP projection to 6.8 percent on-year from 6.6 percent previously.

Fixed-asset investment expanded by 8.6% percent in the first six months of 2017 both beating forecasts.

Many analysts expect the Chinese economy to slow down in the second half of the year, due to policy measures to reduce housing prices and a rapid increase in debt.

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.

But a sharp slowdown in the second half is unlikely as policymakers prepare for an important Communist Party congress later this year that will likely make Xi the most powerful leader in a generation.

"Based on this data, there is no need for easing and no need really for tightening either because inflationary pressures are very much contained".

China's oil refineries ramped up throughput in June to the second highest on record, with some independent plants raising output even as state oil majors prepare to take drastic steps to cut production during the peak summer season.

President Xi Jinping said at the National Financial Work Conference, held on July 14-15, that China should steadily promote the yuan's internationalisation, deepen reforms in the yuan exchange rate mechanism, and achieve yuan convertibility.

Despite all the efforts property investment grew by 8.5 percent in the first half of this year, up from the same period in 2016.

The composition of Chinese exports also changed in ways that could intensify trade friction and affect China's trade surplus.

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