China steel output hits record in June

Chinese economy steady amidst slowdown worries

FAI grew 8.6 percent year-on-year in the first six months, down 0.6 percentage points from the first quarter, according to the National Bureau of Statistics (NBS).

The government has trimmed its 2017 growth target to about 6.5%, after it expanded 6.7% in 2016 - its slowest rate in more than a quarter of a century.

On a quarterly basis, China's growth improved to 1.7% in Q2 compared to a year ago.

Industrial output for June grew by 7.6 percent, well above the forecast of 6.5 percent, and retail spending rose by 11 percent compared to June the previous year.

Analysts had expected quarterly growth would quicken to 1.7 per cent.

The data adds to evidence that China's property market boom is running out of steam as the government continues cooling measures to quash potential asset bubbles.

Last week's data showed that China's exports, as well as imports in June, grew more than expected from a year before, which may offset sluggishness in other parts of the economy in the second quarter of this year.

The statistics bureau urged that China should be "united even closer around the Party Central Committee with Comrade Xi Jinping at its core" to overcome any uncertain economic factors at home and overseas.

Mainland markets traded in negative territory for the first half of the day, with the Shanghai Composite down nearly 2.5 percent at one point and the Shenzhen Composite down more than 3 percent.

While growth in the high-flying property sector has cooled this year, a rebound in exports after several years of decline has helped prevent any broader slowdown in China's economy. The growth was forecast to stay at 6.5%.

China's June crude oil output fell 2.3 percent on the year to 16.21 million tonnes, or 3.94 million barrels per day (bpd), the National Bureau of Statistics said on Monday.

But The People's Bank of China did not follow the United States in raising interest rates in June, which would further temper, despite capital flowing out of the country and instead has injected liquidity into the market to counter the prospect of a credit crunch.

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