Central bank of China did not follow US Federal Reserve System in interest rate hike. It happened at the moment when recent economic data showed that Chinese economy growth slowed down in May, Bloomberg reports.

Second largest economy in the world is slowing down after its growth rate exceeded forecasts in the first quarter. This is observed among US intentions to apply tariffs to Chinese export. Besides, economic expansion was restricted by the government’s strategy to reduce state firms’ debt and shadow banking sector.

Industrial output increased in May by 6,8% compared to the last year. Forecasted level was 7%. Rise in retail sales was 8,5% compared with forecasted increase by 9,6%.

Chinese shares went up after news that central bank of China is not going to raise interest rates, however, they dropped after negative economic news. Index Shanghai Composite lost 0,3% after rising as much as 0,5%.