Experts: Positive signs in property, manufacturing

Aidan Yao, senior emerging Asia economist at AXA Investment Managers.[Photo/China Daily]

A1: Manufacturing investment rose 5.6 percent in May, recouping some of its lost momentum in April. In addition, retail sales expanded 10.7 percent in the same month.

In May, fixed asset investment growth declined to 8.6 percent from 8.9 percent in April. Industrial production grew 6.7 percent year-on-year, unchanged from April.

A2: The Chinese economy has remained steady after losing some stream in the first quarter. Industrial sectors weakened further due to softening growth in infrastructure and property investment. Manufacturing investment has picked up the slack, with robust consumer spending and exports also providing an offset.

We expect a gradual economic slowdown in the second half of 2017, thanks to policy tightening in the housing market and the financial system.

A3: As far as potential risks are concerned, we have highlighted, for a while, renewed renminbi depreciation, capital outflows and commodity price declines.