China’s nominal GDP is more important – ANZ

Raymond Yeung, Chief Economist - Greater China at Australia and New Zealand banking group (ANZ), offers a quick reaction on the Chinese Q2 growth figures.

Key Quotes:

“With the first half of the year registering a headline growth rate of 6.3% y/y, only a fall below 5.8% in the second half would prevent China attaining the official target of 6.0%.

In fact, June’s activity data suggests a stable growth profile of 6.2% in Q2. 

However, nominal GDP continues to worry us (H1: 8.1% y/y in CNY terms). With credit expanding at a faster rate, the debt-to-GDP ratio is bound to increase. “