China posts 6.3% on-year economic growth

China’s economy grew 6.3% on an annual basis in the second quarter, largely banking on base effects that helped magnify the on-year reading but the sequential momentum was frail and indicated weakening demand.

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The GDP data is a little hard to interpret because the year-on-year number was significantly weaker than I expected but the quarter-on-quarter number, as reported by the NBS, is a little higher than what I expected, so I'm trying to see if they have revised some of the earlier data," said Louis Kuijs, Chief Asia Economist at S&P Global.

Beijing's National Bureau of Statistics said in a statement that the economy "showed a good momentum of recovery

The yuan fell about 0.37% to 7.1680 per dollar. The yuan recently hit 8-month lows, pressured by the firming U.S. dollar and a flurry of weaker-than-expected weak Chinese data. It has lost more than 3% to the dollar so far this year, Reuters said.

Chinese stocks fell, with benchmark Shanghai Composite index and blue-chip CSI 300 Index both dropping more than 1%. China’s GDP in the first quarter beat expectations and grew by 4.5%, as consumers flocked to shopping malls and restaurants after nearly three years of “zero-COVID” restrictions were removed at the end of 2022.