China’s Q2 GDP came in at 7.0% on a YoY basis, according to the announcement this morning, compared to 6.9% for the previous cycle. On a QoQ basis, the number showed a slight improvement, lifting from 1.6% to 1.7%. Retail sales, fixed asset investment and industrial production indices also showed slight improvements.
The GDP figure seems to fit within the realms of several other recent announcements from Beijing. On a daily basis, China’s leading newspapers have been opining that the stock market is very healthy and will continue to grow. At the same time, China has arrested more than 50 Human Rights lawyers, and accused them of short-selling equities. Stockbrokers have been ordered to buy shares.
My immediate reaction to this 7.0% print? This number is for domestic consumption and meant to improve confidence. Watch for future revisions.