Raymond Yeung, Chief Economist – Greater China at Australia and New Zealand banking group (ANZ), offers a quick reaction on the Chinese Q2 growth figures.
Key Quotes:
“With the first half of the year registering a headline growth rate of 6.3% y/y, only a fall below 5.8% in the second half would prevent China attaining the official target of 6.0%.
In fact, June’s activity data suggests a stable growth profile of 6.2% in Q2.
However, nominal GDP continues to worry us (H1: 8.1% y/y in CNY terms). With credit expanding at a faster rate, the debt-to-GDP ratio is bound to increase. “
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