Industrial profits rebound to buoy economic recovery

Supportive measures will significantly boost market confidence, expert says

China's economic recovery is likely to accelerate over the rest of the year after industrial profits rebounded strongly in August, signaling that the growth of the world's second-largest economy is back on a firmer footing and the supportive government policies have begun to take effect, economists said on Wednesday.

While the green shoots of recovery have strengthened their confidence that China is on track to achieve its annual growth target of around 5 percent in 2023, economists said the country still needs to grapple with stress in the property market as well as the still-weak demand.

Looking to the rest of the year, they expect to see more property easing policies, forceful fiscal measures and a third round of cuts across key policy rates, to support the growth of the Chinese economy.