TD Securities' analysts note that China’s Q2 GDP came in at 6.2% y/y, following a 6.4% increase in the previous quarter, matching TD’s and market expectations.

• “Accompanying comments by NBS sounded downbeat, noting external uncertainties and downward pressures. However, higher frequency data for June released at the same time looked far better, with industrial production up 6.3% y/y (market 5.2% y/y), retail sales up 9.8% y/y (market 8.5%) and fixed assets investment up 5.8% YTD y/y (market 5.5%).
• Although growth has slowed to its weakest in many years, this was well flagged in advance and the data is backward looking in any case. The other data released today, as well as new loans and aggregate financing released last week, suggest less urgency for fresh stimulus though we still expect more targeted easing.”