Chinese economy accelerates for a sixth month, report says

Chinese economic growth accelerated for a sixth consecutive month in October, reaching its fastest pace in almost three years, according to an independent gauge of economic activity.

Capital Economics' China Activity Proxy index pointed to a rate of expansion in gross domestic product of 6.0% year-on-year in October, up from 5.6% in September, its fastest clip since February 2014.

Chiang Liu, China economist at Capital, pointed out that such rates of GDP growth were above its own estimates of so-called 'trend growth' of between 4.5% and 5.0%.

"As a result, once the impact of past policy easing wanes, we think the economy will likely slow again. There are already signs that the property market is starting to cool," she said.

The CAP revealed broad-based strength, with a rise in electricity demand, growth in domestic freight traffic and a further increase in sea cargo volumes, the economic research company said in a research note sent to clients.

Nonetheless, Liu did not anticipate a sharp drop-off in activity.