China's economy grew faster-than-expected in the second quarter of 2017 yet President Xi Jinping is likely to remain wary of risks 'blowing up in his face', Andrew Collier, managing director of Orient Capital Research, told CNBC Monday.
"The overall message is Xi Jinping is desperate to avoid what he calls 'risks in the system' and what he means by that is he doesn't want anything blowing up in his face before the party conference in the fall. That doesn't mean they're actually going to restrain credit," Collier said.
"There's a lot of stuff going on in the economy that (the government) is covering up and they can do that for this year but I don't know about 2018," he added.
China reported stronger-than-expected economic growth data on Monday as the world's second-largest economy was supported by robust industrial output, retail sales and exports. The Chinese economy grew 6.9 percent (year-on-year) in the second quarter to keep pace with the first quarter of 2017, according to the National Bureau of Statistics.
Economists polled by Reuters on average had expected 6.8 percent growth in the April to June period against the same time last year. The better-than-forecast economic data keeps Beijing on track to comfortably meet its 2017 growth target.