BEIJING, Oct 19 (Reuters) – China’s economic growth slowed slightly as expected in the third quarter as the government’s efforts to rein in the property market and debt risks tempered activity in the world’s second-largest economy.
While China produced forecast-beating growth of 6.9 percent in the first half, many economists and investors had expected momentum would start to fade as the government cracks down on riskier lending and speculation in the housing market.
China’ central bank governor said earlier this week that the economy could grow 7 percent in the second half of this year, while stressing that more needed to be done to reduce the risks from a rapid build-up in debt.
STEPHEN INNES, HEAD OF TRADING, ASIA-PACIFIC, OANDA IN SINGAPORE
“With the China GDP coming in on consensus, whatever bullish sentiment the markets were positioned for…after Zhou Xiaochuan’s comment earlier this week that the economy could grow 7 percent in the second half of the year, should get priced out quickly.
“The GDP reading could weigh negatively on both mainland stock and currency markets as traders may position for further weakness into year-end suspecting financial curbs will continue to have a negative impact on growth in China.
“USD/CNH traders were caught short likely positioning for a more robust GDP.”
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