China's Service Sector, Especially Internet-Based Business, Will Continue Excellently

The service sector in China, especially internet-based businesses, will continue to outperform other sectors by 2018 to support China's economic growth, analysts say.

Tang Jianwei, an analyst at Bank of Communications, estimates sector growth rates services will exceed the industrial sector, along with the development of the digital economy.

"Structural reforms in China's supply sector will lead to industrial upgrading, improving the efficiency and quality of the company, Tang said.

The latest data in the National Bureau of Statistics shows China's services sector increased by 8% by 2017, outperforming the economy as a whole which grew in the range of 6.9%.

According to Nomura, a Japanese securities company, the study on the data shows the contribution of traditional service sectors, such as real estate, retail and wholesale, finance and catering, last year all decreased or fixed

The main advantage is mainly driven by information technology and transport services, which is a sign of strong performance in the new Internet-based economy, he added.

"We believe that Internet business is likely to continue to excel when China adjusts its economy to what it calls as a new economy, "said Nomura.

After the release of better GDP data from perkiraa n on Thursday (18/1), Nomura raise China's GDP growth forecast to 0.1 percentage points, to 6.5%. [em]