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Overall this was the slowest pace of expansion in three years indicating a clear slowdown in growth in world's second biggest economy. However, China Daily reported that officials expect growth to rebound to 8% in Q3 and 8.3% in Q4 reaching the key 8% target by end of the year. 

Investors now expect a soft landing for the Chinese economy with PBOC anticipated to lower rates 2 or 3 times before the end of the year in order to stimulate demand, yet with Europe - China's biggest export market - showing few signs of improvement  the prospect of further contraction in Chinese rate of growth remains a very real possibility.