Given that the first and second quarter GDP growth of China was upwardly revised, the third quarter GDP growth expanded 6.8 percent year-on-year. The figure corresponds with a slower quarterly growth of 1.7 percent quarter-on-quarter in the September quarter.
For China to attain 7 percent growth in the second half of 2017, as proposed by the People’s Bank of China Governor Zhou Xiaochuan, the fourth quarter GDP growth would be required to expand 7.1 percent or 2 percent quarter-on-quarter, higher than third quarter’s 1.7 percent, stated ANZ in a research report.
Meanwhile, the investment pipeline could give a buffer against a huge slowdown. According to ANZ, the Chinese economy is expected to expand 6.7 percent for the whole of 2017. The M2 money supply data released in the previous week showed additional deceleration in the third quarter as compared with the second quarter, indicating that deleveraging is still underway, added ANZ.
At 13:00 GMT the FxWirePro's Hourly Strength Index of Chinese Yuan was neutral at 34.1959, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 21.1901. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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