=MARKET BUZZ: China GDP Beats Expectations; Strong Growth Won’t Last - Capital Economics
HONG KONG (Jul 17) -- Capital Economics says strength in Chinese economy unlikely to last as “the recent crackdown on financial risks has driven a slowdown in credit growth, which will weigh on the economy during the second half of this year.” China’s economy grew better-than-expected 6.9% in 2Q, official data released earlier shows; economists polled by Reuters on average expected 6.8% growth. June retail sales and industrial production data also beat expectations. Since mid-April, China has intensified efforts to deleverage economy, clamping down on country’s shadow banking business. President Xi Jinping over the weekend at National Financial Working Conference laid stress on containing systemic risks and said country’s central bank will to play bigger role in managing financial risks, according to Xinhua News Agency. Shanghai little changed after falling by as much as 2.5% earlier.
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