China beats growth forecasts but shares tumble yet again
China's economy grew an annual 7pc in the three months to the end of June, beating analysts' forecasts, though its volatile stock markets took a sharp dive in a reminder of the threats to Beijing's efforts to direct the economy out of a slowdown.
Policymakers last week unleashed a series of measures to pull stocks out of a 30pc nosedive, but the latest tumble could reawaken concerns over the government's ability to manage the economy.
Official growth figures and monthly activity data beat expectations across the board, with factory output hitting a five-month high, following reports of increased bank lending on Tuesday. As the National Bureau of Statistics released the upbeat figures it described the stock markets as key to economic stability. However key indices, already down in morning trade, fell more than 4pc yesterday afternoon.
The CSI300 index ended down 3.5pc, while the Shanghai Composite Index lost 3pc.
It has been a difficult year for the world's second-largest economy, with slowing growth in trade, investment and domestic demand compounded by a cooling property sector, deflationary pressure, then the equity market panic from mid-June.
Asian tiger may start global recession: page 4