China economy shows need for businesses to stay alert - HSBC

HONG KONG - China's economy grew slightly faster than financial markets expected in the second three months of 2016, expanding by 6.7% from the same period a year ago to stay flat at the pace set in Q1 when growth chalked up its slowest quarter since 2009. HSBC's Asia Pacific head of Global Trade & Receivables Finance, Siew Meng Tan, says the data shows the need for businesses to remain vigilant as the economic cycle evolves.

"China's growth prospects are crucial for companies engaged in overseas trade and today's data underscores the importance of prudently managing balance sheet and working capital risks in this current phase of the economic cycle," she said.

Fixed asset investment growth, a key gauge of the resilience of economic performance, eased to 9% in the first half of 2016 versus 9.6% in the first five months of the year.

Private sector investment rose 2.8% in the first half of the year, down from 3.9% in the first five months.  www.hsbc.com (ATI).