- China Economic Spotlight (17JUL08) (HSBC Global Research)

China’s GDP growth continued to slow moderately to 10.1% y-o-y in 2Q08, from 10.6% in 1Q08, reflecting the impact of slowing external demand, policy tightening and MAY08's earthquake. 17JUL08’s data is more evidence that inflation rather than growth slowdown is the major macro risk. Beijing must keep credit tight for the rest of the year to check inflation.