2017 Q2 GDP reached 6.9% y/y, flat with Q1 outturn and higher than the market concensus of 6.8% y/y, suggesting growth momentum is stronger than expected. The strong growth momentum is reflected in a batch of economic activity indicators released today. Both surging external demand and comparatively easing credit condition in June contributed to the good performance. However, risks from debt overhang, capital outflow and shadow banking still exist; more importantly, the ongoing deleveraging in financial sector and over-capacity industries might drag on growth in the medium term. Altogether, we raised our growth projection to 6.5% for 2017 (vs the official target: 6.5%; Bloomberg consensus: 6.7%) .