China: Growth momentum maintained with strong demand and stabilizing property market - Natixis

China reported a growth of 6.9% in the second quarter, topping the market expectation as consumption spending continued to be the leading factor driving China’s economic growth, according to analysts at Natixis.

Key Quotes

“Fixed asset investment recorded an 8.6% improvement and contributed more than 2% of GDP growth.”

“The government’s efforts to curb property prices continued to pay off as property market stabilized in June.”

“Looking forward, given that central and local governments’ fiscal expenditures already surged to support growth in the first half, the economy is pressured to maintain the positive momentum. Hence, we forecast a higher but conservative growth of 6.7%, 0.2% higher than Beijing’s target.”