China posts stable 6.9% growth in Q2

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The increase in the area of property sold also slowed to 14.1 percent in the second quarter year-on-year, from a 19.5 percent gain in the first quarter, Reuters calculation showed.

As compared to China, India's GDP only grew by 6.1 percent in the first quarter, which is also less than the preceding year's projection of 7 percent.

China's economy grew 6.9 percent in the second quarter from a year earlier, buoyed by strong consumption and exports, despite tightening financial conditions, official data showed Monday.

Part of China's economic health in the second quarter reflected robust exports, with demand beginning to recover in Europe and particularly the United States after a long period of depressed growth.

Shilen Shah, bond strategist at Investec Wealth & Investment, said: "The better than consensus print for Chinese Q2 GDP suggests that the economy is maintaining momentum with both industrial output and fixed asset investment somewhat stronger than estimates".

The figure of 6.9 percent between April and June was the same as the first quarter of 2017, and 0.1 percent above analysts' projections.

However, buyer demand appeared to be more resilient than expected, reinforcing analysts' views that China's property market is unlikely to suffer a hard landing as some have anxious. Industrial output, which rose 7.6% from the same period a year ago, paced the GDP gains, while an 11% surge in retail sales underscored the strength of the domestic consumer economy.

Chinese exports will remain the backbone of growth in the world's second largest economy thanks to a gravity-defying property boom and higher government infrastructure spending.

As reported by the Financial Times, China's GDP growth last year was 6.7 percent, while the government is targeting a full-year growth rate of around 6.5 percent for this year.

It is unclear whether the new method has been used for Monday's second quarter GDP read.

Investment, the biggest single component of economic growth in recent years, rose by 8.6% in the first half of the year, but that was down from 0.6% from the first quarter's expansion.

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