The economy expanded 6.9 percent in April-June, the same as the previous three months and better than the 6.8 percent tipped in an AFP survey. “The recent crackdown on financial risks has driven a slowdown in credit growth, which will weigh on the economy during the second half of this year,” he said. President Xi Jinping called for tougher regulations to crack down on financial risks during a weekend National Financial Work Conference, which sets the tone for reforms, according to state media. The government will continue to deleverage the economy through prudent monetary policy and by reducing leverage in state-owned enterprises, Xi said. “Debt reduction will become an important consideration in monetary policy,” Yeung said, predicting more corporate defaults and a tightening of credit policy among banks.

Source: The Standard July 17, 2017 11:15 UTC