China's GDP, economic data beat expectations

China's GDP, economic data beat expectations

China's GDP, economic data beat expectations

Updated 17 July 2017, 14:15 AEST

China's economy continues to beat expectations, with economic growth coming in slightly ahead of analyst forecasts.

China's economy has continued to beat expectations, with its economic growth coming in slightly ahead of analyst forecasts.

According to official data released on Monday, China's gross domestic product has maintained its annual growth rate at 6.9 per cent.

The typical forecast was for a slight slowdown in year-on-year growth to 6.8 per cent in the June quarter.

Likewise, urban investment in June remained steady with an 8.6 per cent annual growth rate - which was slightly better than what economists had predicted.

As for factory output and retail sales, they came in well ahead of expectations - at 7.6 and 11 per cent growth respectively.

China is actually targeting slower annual economic growth of around 6.5 per cent this year.

This is lower than the 6.7 per cent pace recorded in 2016 - and would be the slowest growth in 26 years.

"Overall, the economy continued to show steady progress in the first half ... but international instability and uncertainties are still relatively large, and the domestic long-term buildup of structural imbalances remain," China's National Bureau of Statistics said in a statement which accompanied the data.

Julian Evans-Pritchard, the China economist at Capital Economics, has an even more cautious take on the data.

"We don't expect the strength to be sustained," said .

"We have doubts over the accuracy of the official figures, which point to implausibly stable growth in recent years.

"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."

After the China figures were released, the local share market rebounded from its morning trading losses.

At 1:12pm (AEST) the ASX 200 index was trading flat at 5,763.