"Domestic demand is weakening and external demand is under pressure from the escalating trade friction between China and the US," said Wen Bin, chief economist at Minsheng Bank in Beijing.
Wen said he expects the central bank to continue the reserve ratio (RRR) of the lower banks in the coming months to counteract a stronger economic slowdown.
The central bank said on June 24 that it would lower the RRR by 50 basis points for some banks to accelerate debt (19659002) After the official PMI for the industry reached an eight-month high, there was increasingly signs that China's economy is slowly slowing down.
Credit growth has slowed this year Government criticizes many types of loans, and the tighter liquidity environment seems to have an impact on growth.
The government will publish GDP growth data for the second quarter on July 1
ANZ analysts forecast growth of 6.7 percent for the second quarter, compared to 6.8 percent in the second quarter first quarter.
In May, industrial output, retail sales and fixed investment failed to meet expectations as car sales declined Local governments have scaled back construction projects while closely scrutinizing Beijing for borrowing.
While the economy could overcome these internal challenges without dramatically slowing growth, the US trade dispute worsens uncertainty over how China's economy will react] As US President Donald Trump puts pressure on China with the threat of new ones Has increased tariffs and investment restrictions, China's stock markets and currency suffered one of the worst months since June.