Despite property market concerns, China's economy outperforms expectations.

In October, China's economy performed better than expected, with retail sales and industrial output exceeding expectations, allaying fears that a property slump was spreading.

According to the National Bureau of Statistics, industrial output increased 3.5 percent year on year in October, faster than in September and higher than economists expected. Retail sales increased by 4.9 percent, exceeding the 3.7 percent predicted by economists polled by Bloomberg.

Fixed-asset investment growth slowed to 6.1 percent in the first ten months of the year, compared to a forecast of 6.2 percent. The surveyed unemployment rate remained stable at 4.9 percent.

The better-than-expected results will be welcomed after the economy's momentum slowed in the second half of the year, with both demand and supply under pressure. Beijing's crackdown on the real estate market has slowed lending to a sector that accounts for up to 25% of GDP, while energy shortages have caused factories to reduce output.

"The national economy was generally stable and continued on its recovery path," the NBS said in a statement. "However, we must keep in mind that the international environment remains complicated and severe, with numerous unstable and uncertain factors."

Separate NBS data showed that home prices fell 0.25 percent from the previous month in October, a larger drop than in September.

The CSI 300 Index was down 0.3 percent as of 10:04 a.m. in Shangahai, maintaining its loss after the data dump.

The slowdown has refocused attention on policymakers, who have so far taken a more measured approach to stimulus, preferring to "fine-tune" policies rather than flood the economy with assistance.