China's growth robust in Q1 but rates unsustainable, analysts warn

Beijing

CHINA'S economy grew a better-than-expected 6.9 per cent in the first three months of the year on persistent government support in the real estate and construction sectors.

The quarterly growth represented China's fastest in nominal terms in five years, and surprised analysts who had expected recent measures implemented locally to cool the property sector, as well as more stringent monetary policies, to lower the pace of economic growth.

China's growth slowed to a 25-year low in 2015 which prompted the government to intervene by supporting investments in construction and real estate.

Over the past two quarters growth rates have stabilised.

"The Chinese economy is off to a healthy start in 2017, with corporate earnings trending up and concerns about trade tensions with the Trump administration trending down. Steady growth provides Beijing with an opportunity to focus on reducing financial sector risks," said Andy R…