China reported second quarter growth data Monday that topped expectations.
It said that second-quarter GDP growth was 6.9% against the prior year, and that comes as investors watch the world's second-largest economy for any signs of slowdown amid concerns over high debt levels.
Economists polled on average had expected 6.8% growth in the April to June period against the same time last year, compared to the first quarter's 6.9%.
A woman makes toys at a factory in Ganyu, in China's eastern Jiangsu province on June 9, 2017.
The Shanghai Composite was down 1.11% 10:09 a.m. SIN/HK while the Shenzhen Composite was down 2.57%, recovering some from earlier losses.
Beijing has set a growth target of around 6.5% for 2017, a tad lower from 6.7% in 2016, which was the country's lowest rate in 26 years.
With two quarters of GDP expansion at 6.9% against a lower full-year target, the Chinese government will now have greater tolerance of slower growth in the second half of the year, said Aidan Yao, emerging Asia economist at AXA Investment Managers..
He cited tightening policies in the property market and the government's deleveraging campaign which may affect the second half of the year, he added.
"This time a year ago, things were a bit dicey with concerns about a growth slowdown and pressure on capital outflows and the currency, but as we expected in the lead-up to party congress, stability has reigned. Growth momentum has stayed pretty high and the authorities have really tamped down the pressures on the capital outflow," said Stephen Schwartz, head of Asia-Pacific sovereign ratings at Fitch.
The ratings agency on Friday maintained its A+ rating on China with a stable outlook.
Its forecast for China GDP growth this year is 6.5%, with upside risk due to strong growth and exports.
China reported second quarter growth data Monday that topped expectations.
"This time a year ago, things were a bit dicey with concerns about a growth slowdown and pressure on capital outflows and the currency, but as we expected in the lead-up to party congress, stability has reigned. Growth momentum has stayed pretty high and the authorities have really tamped down the pressures on the capital outflow," said Stephen Schwartz, head of Asia-Pacific sovereign ratings at Fitch.
