China releases second quarter GDP data and other key indicators

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Robust nominal GDP growth - the expansion pace not adjusted by prices - rose 11.1 percent.

China is grappling with how to ensure annual growth of at least 6.5 percent this year while reining in financial sector risks ahead of a twice-a-decade leadership transition this fall at the 19th Communist Party Congress.

"Everything shows that the economy is recovering and growing compared with a year ago", Huang Weiping, an economics professor at Renmin University, told dpa.

"If global demand for Chinese goods stays elevated, that will offset the curbs on growth that property and debt that the government has implemented", said Tao Wang, chief China economist at UBS.

Economic growth has been boosted by government investment in infrastructure and poverty alleviation projects, as well as by entrepreneurship and the service industry, said Hu Xingdou, an economics professor at the Beijing Institute of Technology.

The result outpaced an expectation for 6.8% growth by economists polled by The Wall Street Journal.

The gross domestic product grew to 38.15 trillion yuan (US$5.62 trillion) in the first half, up 6.9 percent year on year.

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Industrial capacity utilisation stood at 76.4 per cent in the first half, up 3.4 percentage points from a year ago.

China also reported January to June fixed asset investment rising 8.6 percent on year (topping a Reuters poll of 8.5 percent growth) while property investment rose 8.5 percent in the same period.

In the first half of the year, industrial production grew 6.9%.

So far, this monetary tightening has not affected actual progress with private investment picking up led by New Economy parts of China which is showing great development in the tech side translating into strong growth.

The keyword, "risk", appeared the most in the meeting notes, mentioned 31 times, while "regulation" was mentioned 28 times, according to an analysis by Credit Suisse. "The total debt ratio of Chinese enterprises has reached 156 percent of GDP, which might be the highest in the world".

In the latest alert, Fitch Ratings on Friday said China's growing debt could trigger "economic and financial shocks" even as it maintained its A-plus rating on the country.

In the first six months, however, growth in retail sales of consumer goods expanded to 10.4 percent from the same period a year ago, or compared with 10 percent in the first quarter of 2017.

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