RAYC - China's GDP growth data may signal more policy easing

Nikada/E+ via Getty Images Fresh data from China overnight showed the nation's economy expanding at a 7.9% pace in the second quarter, boosted by strong readings on industrial output (+8.3% Y/Y), retail sales (13.9% Y/Y) and fixed-asset investment (+12.6% Y/Y) for June. However, the GDP number did miss expectations for a rise of 8.1%, weighed down by higher raw material costs and new coronavirus outbreaks. The figure was also far slower than the 18.3% Y/Y jump recorded during the first three months of the year, but no one had forecast that rate to continue given the statistical pandemic distortions. Bigger picture: Despite some economic resilience, expectations are building that policymakers may have to do more to support the recovery. Beijing announced a cut to its new reserve ratio requirement last week, freeing up more liquidity in the banking sector for lending. Stock in Shanghai even rose 1% following the latest data on

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China's GDP growth data may signal more policy easing