SINGAPORE, July 20 -- China's 6.9 percent economic growth for the second quarter is stronger than expected, and the growth could stay constant in the next quarters, according to a report released to media by VP Bank, an international positioned private bank, here on Thursday.
The report said price pressures in China's industrial sectors are also moderating as the re-stocking cycle shifts into a lower gear.
It added that private sector is now the growth engine of China, accounting for 70 percent of economic output. A recovery in this part of the economy is therefore more sustainable.
As for China's currency outlook, the report said China's forex reserves have risen for four straight months to the end of June, and forecasted that the RMB will continue moving sideways against the U.S. dollars between 6.70 and 6.90.
VP Bank kept an overweight for China as it does have the strongest investment case within the whole emerging Asia region accompanied by strong technical momentum. It took China's consumption and technology as a strong investment focus, followed by infrastructure and additional demographic themes.
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