Chinese growth slows in second quarter

Chinese growth figures have dropped from 9.7% in the first quarter of this year to 9.5% in the second quarter, as the government struggles to contain rising inflation.

Inflation in China hit a three-year peak in June at 5.5%, prompting the government to raise interest rates three times this year. China is the fastest growing economy in Asia and the second largest economy in the world after the US, but strong domestic demand has led to an increase in the cost of food and other commodities including fuel. Capital Economics' Mark Williams said the Q2 figures are better than expected and should reduce fears about a hard landing in the near future. "Overall, today's data should dampen fears the economy is heading into a hard landing and they suggest p...