China's third-quarter GDP growth will slow to 7.3 percent year-on-year, investment bank UBS AG said in a research note on Friday.

"We expect the data to show that demand remained weak, de-stocking continued, and the recovery has yet to happen," said Wang Tao, an economist at UBS.

On the positive side, the bank expects to see a faster pace of credit and financing expansion, a continued rebound in property sales, and an acceleration of infrastructure investment.

"We forecast that bank lending will grow by 16.3 percent year-on-year at the end of September, with net new lending reaching 650 billion yuan," said Wang.

The CPI is expected to soften again to about 1.8 percent year-on-year, and PPI to decline another 3.4 percent year-on-year.