Published: Mon, July 17, 2017
Economy | By Annette Adams

Chinese GDP grows 6.9%, topping expectations

Chinese GDP grows 6.9%, topping expectations

China's second quarter GDP figures are due for release first thing Monday morning with economists expecting a resilient 6.8 per cent year-on-year read, above the official 6.5 per cent assumption.

In contrast, the output of raw coal increased 10.6 percent year on year to 310 million tonnes in June, the fourth consecutive month of growth, the NBS said in a statement.

The Chinese government has set an economic growth target this year of about 6.5 percent "or higher if possible", the lowest economic growth target in 25 years.

New construction starts measured by floor area were up 10.6 percent in the first half of the year, compared with a 9.5 percent rise in the first five January-May, the National Bureau of Statistics (NBS) said.

China's economy grew 6.9% during the April-June quarter, beating forecasts by analysts of 6.8% growth, Reuters reported on Monday.

Despite growing concerns about China's financial risks, Premier Li Keqiang said last month that the country could reach this year's economic growth targets.

"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 told reporters.

On a quarterly basis, growth picked up to 1.7 percent from 1.3 percent in the first quarter, in line with expectations.

The data helped push regional stocks, in the form of the MSCI Asia ex-Japan index, past a two-year high in overnight trading while the yuan gained for a sixth consecutive session against the US dollar after the People's Bank of China raised the midpoint of the currency to 6.7562, its highest level in more than 8 months.

On Friday, customs data showed that China's foreign trade accelerated in June, adding to generally strong trade data in the first half of the year.

Driven by double digit growth of nuclear, wind and solar power generation, power output in June increased 5.2 percent year on year to 520.3 billion kilowatt-hours.

"The biggest risk is the credit and loan risk of enterprises", Hu said.

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