China’s economy expanded by 6.3% YoY in Q2 2023, exceeding the 4.5% growth in Q1 but missing the projected 7.3% market estimate. Factors affecting the growth include low base effects from last year and a cautious approach by officials to implementing significant stimulus measures due to soaring local government debt. June indicators displayed a mixed scenario: slowing retail sales growth, accelerating industrial output growth, a stable urban jobless rate, but peak youth unemployment at 21.3%. The offshore yuan fell past 7.17 per dollar, retreating from one-month highs.