The Chinese economy is growing faster than all expectations

On a quarter-over-quarter basis, China's gross domestic product grew 1.7% from the previous three months on a seasonally adjusted basis, the bureau added, compared with 1.3% in January-March, suggesting that momentum in the economy may be performing better than the year-over-year figures indicate.

Data from NBS showed that industrial output climbed 7.6% annually, faster then the 6.5% increase logged in the prior period.

The main Asian stock indexes fell on the data, before recovering to close the day at new highs. Therefore, the second-quarter upturn could be a boon for the country's leaders as they seek to contain a risky build-up in debt that has ballooned to 277 percent of gross domestic product (GDP).

Thus, China managed to exceed its target of 6.5 percent growth, set by the government for 2017.

Chinese exports will remain the backbone of growth in the world's second largest economy thanks to a gravity-defying property boom and higher government infrastructure spending.

China's retail sales grew by 10.4 percent in the first half of the year, picking up pace versus the first quarter's 10 percent growth, the statistics bureau also said. In the first half, retail sales advanced 10.4%.

So far, this monetary tightening has not affected actual progress with private investment picking up led by New Economy parts of China which is showing great development in the tech side translating into strong growth.

Analysts polled by Reuters had expected the economy to expand 6.8 percent in the April-June quarter.

Analysts expect that tighter restrictions on property purchases and bank lending will continue to weigh on the economy in the months ahead.

The meeting is usually overseen by Premier Li Keqiang, but this year, President Xi Jinping also addressed the conference, making it clear the main focus was to reduce financial risks.

The average rural residents' per capita disposable income reached 6,562 yuan in the first half, up 7.4 percent after deducting price factors, while that of urban residents increased 6.5 percent to 18,322 yuan.

Related Articles