Matthews Asia: China's Rebalancing Continues

China's Rebalancing Continues by Andy, Matthews Asia

The rebalancing of China’s economy continued in the second quarter of this year, as services and consumer spending drove more growth than industry and construction. The inevitable deceleration of most year-on-year (YoY) growth rates also continued, but a booming stock market provided a temporary lift to headline GDP growth.

Broking Lift

China’s GDP growth of 7% YoY for 2Q15—level with the 1Q15 pace and down from 7.5% in 2Q14—was greeted skeptically by some observers, but is the result of a strong contribution from the broking industry as the domestic stock market correction began only in the second half of June. (Monthly turnover on all of the domestic exchanges rose 607% YoY in 2Q15,...