China’s Latest GDP Data Shows Need for Businesses to Remain Vigilant, Says HSBC

China's economy grew slightly faster than financial markets expected in the second three months of 2016, expanding by 6.7 percent from the same period a year ago to stay flat to the pace set in Q1 when growth chalked up its slowest quarter since 2009.

HSBC's Asia Pacific head of Global Trade & Receivables Finance, Siew Meng Tan, said the data showed the need for businesses to remain vigilant as the economic cycle evolves.

"China's growth prospects are crucial for companies engaged in overseas trade and today's data underscore the importance of prudently managing balance sheet and working capital risks in this current phase of the economic cycle," she said.

Fixed asset investment growth, a key gauge of the resilience of economic performance, eased to 9 percent in the first half of 2016 versus 9.6 percent in the first five months of the year.

Private sector investment rose 2.8 percent in the first half of the year, down from 3.9 percent in the first five months.



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