"Growth has stabilised, and we also see that the structure is improving. Investment growth is coming down, which is a correction for the over-investment of the past seven years".
-JPMorgan
The world's second-largest economy stabilized at the slowest rate in seven years in the second quarter, putting greater pressure on Beijing to increase stimulus amid softer global conditions. China recorded an annualized 6.7% GDP growth in the June quarter, according to the National Bureau of Statistics, unchanged from the previous quarter but slightly higher than the 6.6% growth rate analysts expected. The Chinese government is targeting for growth of 6.5%-7% this year, but economists are betting GDP growth will slow to the lower end of that range this year. Nevertheless, the country's second quarter GDP figure was not unexpected, as China has been careful to prep markets for further signs of a gradual deceleration. Moreover, Chinese premier Li Keqiang noted that the Chinese economy was "basically stable", and that was not easy to achieve Q1's 6.7% growth rate and that the economy would show continued steady development.
In addition, a separate report showed that industrial production in China jumped 6.2% on year in June. That beat forecasts for 5.9%, and it was up from 6.0% in May. Output added 0.4% on month. Moreover, retail sales advanced 10.6% that beat expectations for 9.9% and up from 10.0% in the previous month.
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