China is increasingly likely to miss its growth target of around 5% this year without more stimulus, as data for July showed a broad slowdown exacerbated by a property market slump. Economists warn that prolonged weakness in property construction will add to destocking pressures in the industrial space and depress consumption demand. The Chinese government has acknowledged economic challenges and signaled more policy support, but market confidence remains low. Experts believe that a firmer policy shift could come in the fourth quarter, but the Chinese authorities' reduced emphasis on economic growth is becoming more apparent.

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