China’s economy expanded 4.3% year-on-year in Q2, missing forecasts and marking its slowest pace in over three years.
China’s GDP grew 4.3% year-on-year in the second quarter, below the 4.5% estimate and the weakest pace since late 2020. Quarter-on-quarter growth matched expectations at 0.9%. The slowdown reflects persistent weakness in the property sector and subdued domestic demand despite targeted stimulus efforts.
Retail sales in June rose 1.0% year-on-year, exceeding the -0.1% forecast, while industrial output grew 5.3%, above the 4.6% consensus. New home prices fell 3.3% in June, extending a four-year decline. The government targets 60tn yuan in retail sales by 2030 under a new consumption plan.
Markets reacted cautiously, with the PBOC setting the USD/CNY midpoint at 6.7910, slightly firmer than expected. Regional equities saw mixed moves, with the Kospi surging while the Nikkei trimmed gains ahead of ASML earnings.