China's economic growth poised to hit 6.9% in Q2

Thanks to strong manufacturing and services sector expansion.

China's economic growth continues to climb up as it posted a 6.9% economic growth for Q2 this year.

According to a report from Deutsche Bank Wealth Management, the rate can be attributed to secondary and tertiary industry growth, especially in the manufacturing and services sector expansion.

Industrial production also grew by 7.6% while retail sale grew by 11% this year.

Exports climbed by 11.3% YoY in June, thanks to domestic and external demand with a healthy amount coming from the US and Europe.

However, new yuan loans continued to remain high at $227.8b in June and grew 5.9% in the first half of the year.

Small-cap stocks also declined sharply, compelling the People's Bank of China to provide a liquidity injection to manage the fall.

Deutsche Bank global CIO Christian Nolting said, "We also note that large- and mid-cap stocks remain resilient in the light of the stock market correction on July 17. This suggests investor confidence in the larger corporates."

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