China's factories beat expectations growing at their fastest pace in three months this June, according to the country's National Bureau of Statistics. Reporting by Yawen Chen and Ryan Woo; Editing by Shri Navaratnam However, the growth was not broad based, with smaller factories struggling relative to larger ones, and analysts expect the Chinese economy to continue cooling as Beijing cracks down on debt risk. The government has been trying to rein in its massive credit bubble by raising interest rates for banks that hold more than 100 percent of deposits or risk losing access to credit. " With tight monetary conditions weighing on credit growth, it will be difficult to avoid a renewed slowdown in growth later this year", said Julian Evans-Pritchard, an economist at Singapore's Capital Economics.
China's factories beat expectations growing at their fastest pace in three months this June, according to the country's National Bureau of Statistics. However, the growth was not broad based, with smaller factories struggling relative to larger ones, and analysts expect the Chinese economy to continue cooling as Beijing cracks down on debt risk. The government has been trying to rein in its massive credit bubble by raising interest rates for banks that hold more than 100 percent of deposits or risk losing access to credit. "With tight monetary conditions weighing on credit growth, it will be difficult to avoid a renewed slowdown in growth later this year", said Julian Evans-Pritchard, an economist at Singapore's Capital Economics.