China's Economic Growth Steady Despite U.S. Tariff Headwinds, Property Market Weakness Persists

Li Chen
15 Jul, 2025
Hong Kong

Stocks in China lost early momentum after investors digested the latest batch of mixed economic data. 

The Hang Seng index edged up 0.2% and eased from a rebound of 1.5%, and the mainland-focused CSI 300 index decreased 0.5%. 

Investors welcomed the second quarter's GDP growth data, but the weak updates on retail sales, property prices, and fixed investment kept investor enthusiasm in check. 

China's GDP expanded at an annual pace of 5.2% in the second quarter, slightly lower than the 5.4% increase in the first quarter, the National Bureau of Statistics reported Tuesday.

For the first half, the economy expanded at an annual pace of 5.3%, confirming that China's economy is resilient despite the threats of monster tariffs. 

The 52% growth in the first half was driven by consumer spending, with exports contributing about 31.2%.

Beijing is looking to decrease the economy's reliance on exports, but the government's trade-in program worth 300 billion yuan (or $42 billion) for cars, household appliances, and consumer goods is losing steam. 

Retail sales advanced at an annual pace of 4.8% in June, slower than a 6.4% rate in May, according to the National Bureau of Statistics.

The jobless rate held at 5% in June, matching the rate in the previous month, according to the official data released by the NBS. 

Overall fixed investment increased 2.8% from a year ago in the first six months compared to a 3.7% rise in the January-May period. 

The weakness in the property sector weighed heavily on the economy, and investment dropped 11.2% in the first six months, compared to a decline of 10.7% in the first five months.

 

China Indexes and Stocks 

The Hang Seng index increased 0.2% to 24,250.90, and the mainland-focused CSI 300 index decreased 0.5% to 3,997.40. 

Property stocks declined after new home prices in 70 major cities fell 0.3% from the previous month in June. 

China Vanke Co. Ltd. decreased 2.4% to HK $5.19, after the real estate developer said net loss in the first half is likely to expand to between 10 billion yuan and 12 billion yuan, compared to 9.85 billion yuan in the same period a year ago. 

Longfor Group Holdings Ltd. decreased 2.4% to HK $10.14, China Resources Land Ltd. fell 3% to HK $28.60, and China Overseas Land & Investment Ltd. declined 1.4% to HK $13.50.