China’s economy growth remained unchanged from the previous quarter, ensuring the government’s growth range of 6.5 to 7 percent is met.
Gross domestic product rose 6.7 percent on-year during the July-September quarter, government data showed on Wednesday. It eased the concerns on slowing growth in the world’s second-largest economy.
“So far this year they have clearly chosen to do everything they can to meet the growth targets, and now there is a little bit of an upward surprise from the housing market which actually will help them with GDP growth this year,” said Louis Kuijs, head Of Asia economics at Oxford Economics in Hong Kong.
However, investors still remain cautious on the official figures. In the third quarter, China’s economy increasingly dependent on government spending and a property boom while exports remained weak.
“As always, the GDP figures will be met with some skepticism…We think that the official figures, which failed to reflect much of the sharp slowdown in growth shown by our measurements last year, are now failing to acknowledge a recent pick-up in growth,” Julian Evans-Pritchard, China economist at Capital Economics, said in a note.
House prices surged in the biggest cities in China in August. While gains have been most apparent in large cities such as Shenzhen, where home prices are up about 60 percent in the past year.
“It’s amazing what a housing bubble and crazy debt increases can achieve,” said Michael Every, head of financial markets research at Rabobank in Hong Kong. “This is not sustainable – but then the alternative is nothing anyone wants to think about.”
China’s growth target range for 2016 is 6.5 percent to 7 percent.