China's GDP growth indicates signs of stabilization

China's retail sales growth recored 10.6% y/y growth in June, which was 10.1% in May. The country's June data came in better than expected, with Q2 GDP growing 7.0% y/y, pointing to more signs of stabilization. Fixed asset investment (FAI) growth held up at 11.4% y/y YTD, supported by infrastructure investment, while the slowdown in property investment stabilized (4.6% y/y YTD), notes Barclays. 

The data followed stronger trade activity, with export growth turning positive for the first time in Q2 and the contraction in imports narrowing. Industrial production growth rose to 6.8% y/y, the highest in H1 15 and up from 6.1% in May (Q1: 6.4%). The activity data were consistent with stronger-than-expected money growth and credit expansion, suggesting the earlier policy easing measures have started to take hold, says Barclays.