Shenzhen’s GDP in the first half grew 7.4% YoY to RMB1.213 trillion, driven by three main trends:
1) A robust services industry, especially in the internet sector;
2) Resilient consumers, especially online, with total retail sales up by 8.3%; and
3) A dollop of government cash put into infrastructure.
Industrial output came in at a steady pace, up 7.4% over the previous six months, and by the same rate YoY. The pillar industries held up: computer, communication and other electronic equipment grew by 11.1. Pharmaceuticals were also strong, at +11.4%, while automobiles were still weak, up just 1.3%.
The financial sector was stable. By the end of June, the balance of domestic and foreign currency deposits of financial institutions (including foreign capital) surged to RMB8.05 trillion, up 13.0%; the balance of domestic and foreign currency loans of financial institutions (including foreign capital) reached RMB5.6 trillion, up 12.0%.
The government did its bit, of course. Fixed-asset investment increased 17.6%, powered by investment in infrastructure, which grew 48%. Naturally, investment in the state-owned economy grew by 34.5%, while private investment grew by 12.3%. However, the most noteworthy achievement was growth of foreign investment, up 65.5%.
Online sales kept booming for retail operators, up 28.6% which pushed total merchandise sales up 8.3% to RMB1.763 trillion.
Trade was less stellar, as was to be expected, at RMB1.337 trillion, down 0.9%, 3.4% less than Q1. However, exports rose 5.1% to RMB757.1 billion, up 2.3% over Q1. Total imports fell 7.8% to RMB580.08 billion, 4.5% less than Q1.