The weakness in the property sector during the first half of the year has dragged down the economy, prompting the government to optimize property policies to support economic growth, said Ding Shuang, chief economist of Standard Chartered Bank for Greater China and North Asia, in an interview with China Daily.

In the first half of the year, especially in the second quarter, China's property sector experienced weakness with falling sales and declining property investments. This not only impacted the property industry but also affected retail sales in sectors such as construction materials, furniture and home appliances. The supply-demand balance in the property sector is expected to improve and property policies optimized in response to the current situation. While the property sector may not see significant growth, measures to release genuine housing demand and improve the quality of housing demand could help alleviate the drag on the overall economy, potentially mitigating the negative growth in property investment in the second half of the year.

Regarding the drivers of economic growth, consumption is likely to play a crucial role, especially in the service sector. To boost consumption confidence, the government may need to implement some stimulus measures. However, in the long term, boosting consumption would require enhancing confidence in job security and continuous income growth, which is more crucial. This can be achieved through endogenous growth momentum, emphasizing the encouragement of private investment and further development of internet-related industries. Historically, the private sector has been a major employer in China, so enhancing employment opportunities and income prospects could lead to sustained growth in consumption.