New Cycle Lows


Directional Triggers Defined


Recovers Well Off Wednesday Low


Pulling Away From The Channel Top


Trades Through Key Support

MNI (London)
     BEIJING (MNI) - China won't become complacent and will keep flexible
policies in place to ensure the economic recovery continues to strengthen in the
second half, spokeswoman Liu Aihua of the National Bureau of Statistics said at
a briefing on Thursday.
     While the strong rebound seen in June is likely to extend in the second
half given a combination of investments and new industries, most indicators are
declining in terms of overall first-half performance, including GDP, industrial
production, service and consumption, Liu said when asked if policymakers see fit
to retreat from monetary and fiscal stimulus measures. 
     GDP surged 3.2% y/y in Q2 after a record 6.8% drop in Q1. Losses caused by
the coronavirus epidemic have not been fully recovered, she said. "It will take
hard work to push the economy back to normal" amid the still spreading pandemic,
said Liu.
     While investment in real estate rose 1.9% in H1, Liu declined to say if the
recovery will continue in H2, noting that indicators such as housing starts and
land purchases declined. 
     In the second half, China will further attempt to boost people's purchasing
power, after 1.3% decline in national per capita inflation-adjusted income in H1
and the sluggish consumer spending.
     Retail sales failed to turn positive in June as expected, falling 1.8% y/y
after a 2.8% decline in May. Some consumer activities requiring gathering and
contacting, such as accommodation and catering, are still subject to anti-virus
restrictions, she said. 
     Though the unemployment rate in H1 declined to 5.7% in June from 5.9% in
May, pressure on employment remains, especially with the incoming university
graduates, Liu said. The surveyed unemployment rate of 20-24 year-olds hit a
record high of 19.3%, up 3.9 percentage points from a year earlier.
     In the second half, China will prioritize unemployment in all of its
policies, including increased hiring of graduate students.
--MNI Beijing Bureau; +86 10 8532 5998; email:
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI London Bureau; tel: +44 203-586-2225; email:
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