Beijing accelerates its pace in 2Q, after the government introduced some measures aimed at boosting growth (relaxation of conditions of credit lending, advancement of public spending plans). The GDP of China slightly exceeded the expectations: 2.0% quarter on quarter, a 7.5% YOY in Q2, slightly above the 7.4% registered in 1Q, according to analysts at Santander Bank.
Industrial production and investment recorded a modest acceleration. In addition, other indicators of activity that are published frequently recorded a modest acceleration. Industrial production in June registered its growing so far year advanced by 9.2% year on year from 8.8 percent in May, with an acceleration of the growth rates of the production in the sectors of telecoms, transport and electrical equipment (including automobiles).
Moreover, production in the retail sector increased 12.4% year on year, slightly below may, however, including advances of 10.7% of electronic sales (compared with 6.6% in May) and 33.9% of communication devices. Since the beginning of the year, urban fixed asset investment increased 17.3% year on year, a step above the pace registered in May.