China Economic Quarterly Q2 2017

Another good quarter might guarantee the economic goal of the year

The China Economic Quarterly is prepared by PwC to share the latest economic and policy updates. In this issue, we provide an overview of major economic indicators for the first half of 2017, policy updates such as tightened scrutiny of China's overseas investments and new work targets set by the Politburo, as well as hot topics of interest such as China's ballooning debt and opportunities of the Guangdong-Hong Kong-Macau Greater Bay Area. 

Major economic indicators

Here are some highlights of the Q2 updates:

  • According to key economic data released by China's National Bureau of Statistics for the first half of 2017, China's economy expanded 6.9% year-on-year in the second quarter of 2017, outperforming market expectations.
  • Services and consumption continued to be notable drivers of economic growth while fixed asset investment growth continued to decline.
  • The International Monetary Fund (IMF) has upgraded its economic forecast for China to 6.7% and 6.4% for 2017 and 2018 respectively. This is the third time this year that the IMF has upgraded China's economic forecast.
  • Chinese regulators have expressed concerns about overseas acquisitions by Chinese firms in certain sectors, underlining the government’s new drive to rein in offshore spending by some of the country's biggest companies. 
  • China’s ballooning debt is a serious concern. Yet, it is unlikely to lead to a financial crisis as it is primarily domestic in nature, and the Chinese government has significant fiscal buffer to keep things under control. 

 

Contact us

Frank Lyn
China and Hong Kong Markets Leader
Tel: +[86] (10) 6533 2388
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Elton Huang
PwC China Shanghai Senior Partner
Tel: +[86] (21) 2323 3029
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Elton Yeung
Partner
Tel: +[86] (10) 6533 2008
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