China’s economy stabilised as lending and consumer spending perked up late in the June quarter, suggesting the world’s second-largest economy is responding to stepped up monetary and fiscal policy support. But with private investment growth stalling, the state is having to fall back on its old playbook of revving up investment. "Consumer spending has proven more resilient," said Frederic Neumann, co-head of Asian economic research at HSBC Holdings Plc in Hong Kong. "China is also weathering the external drag better than feared, with generous stimulus oiling the wheels of the domestic economy." "While its economy continues to face daunting challenges in the transition away from export- and investment-led growth, the doomsday predictions for the Chinese economy look like stopped clocks."

Source: Bangkok Post July 15, 2016 03:56 UTC