Update | Chinese economy expands 7.5pc, faster than expected, data shows

The mainland's economy expanded faster than expected in the second quarter, indicating the government's mini-stimulus policies have taken effect, although cooling in the property sector poses risks in the months ahead.

Gross domestic product grew 7.5 per cent in the quarter, rebounding from the 18-month low of 7.4 per cent in the first quarter, the National Bureau of Statistics said yesterday. The pace exceeded market expectations of 7.4 per cent growth after Premier Li Keqiang said the economy was doing better in the second quarter than the previous three months.

Hong Kong and mainland stock markets were mixed yesterday after the data was released. The Shanghai Composite Index lost 0.2 per cent to finish at 2,067.28. Hong Kong added 0.27 per cent, or 63.32 points, to close at 23,523.28. The Shenzhen Composite Index, which tracks stocks on the mainland's second exchange, dropped 1.03 per cent, or 11.53 points, to 1,105.22.

The bureau's spokesman Sheng Laiyun said the economy was stable in almost all areas, including growth, jobs, inflation and income. But he warned that economic restructuring would cause more pain, saying: "We must not be blindly optimistic."

Sheng said corrections in the property market were set to "put pressures on economic operations in the short term".

Analysts said Beijing would need to roll out more easing steps to ensure the annual growth target of about 7.5 per cent was met.

Some urged the government to lower the reserve requirement ratio - the cash banks must keep in reserve - for more banks.