Osaka

Financial Says Chinas Q2 GDP Surprises To Upside

Osaka Financial says latest GDP data shows Chinas economy may be stabilizing as efforts to stimulate
activity bear fruit.

Osaka Financial says it remains eminently bullish on the Chinese economy after official data from the
countrys National Bureau of Statistics showed that gross domestic product (GDP) increased 7%
compared with the same period last year; better than broad expectations for a 6.9% expansion.

Data for industrial production showed a 6.8% year-on-year jump in June compared with consensus
forecasts for a gain of 6% while Junes retail sales rose 10.5% against expectations for a 10.2% increase.

The three-for-three beat on forecasts led to skepticism from analysts and economists who raised doubts
as to the veracity of the information.

This is nothing new, said Kimi Inoue who heads Asia-Pacific markets research at Osaka Financial China
calculates its GDP data in some fairly unorthodox ways and this leads to questions over its accuracy
particularly from Western economists.

Concerns over the cooling economy have prompted policy makers to take action. The Peoples Bank of
China has cut interest rates and eased the reserve ratio requirement (RRR) four times since November
2014 amid fears the governments 7% annual GDP target was in danger of being missed.

Weve yet to see if the turbulence in Chinas mainland stock markets will find their way into the real
economy in the form of reduced consumer spending but were confident the governments actions have
put the brakes on any potential spill over, added Inoue.

Osaka Financial says that despite the amounts wiped off stock market valuations, the financial sector
still only accounts for a small percentage of Chinas economy and that, unlike its counterparts in Europe
and the United States, the country is unlikely to fall into a crisis just on the strength of a sharp correction
in equities.

About Osaka Financial
Established in 2007, Osaka Financial is a fully-independent investment and asset management practice
providing bespoke financial and wealth management solutions to individuals and families who need to
build upon and conserve their wealth. We provide a comprehensive range of services including asset
management, retirement planning and portfolio design.

Staffed by a number of exceptionally well-qualified finance professionals, Osaka Financials business
philosophy reflects the core values of its founders: uncompromising independence, clarity,

performance, fiduciary responsibility and integrity.

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