Investment growth has slowed dramatically in China. Illustration: iStock

Under the support of investment and consumption, economic growth in the second half of the year is more optimistic, said Kang Yong, the chief economist of KPMG China, China Securities Journal reported.

With the accelerated issuance of local government special bonds, infrastructure investment is expected to rebound moderately.

At the same time, current regulatory policies encourage financial institutions to provide support for local government financing platforms under market rules. This will also help to boost infrastructure investment, according to Kang.

Meanwhile, Kang believes there is still room for improvement in consumption growth. The contribution rate of consumption to economic growth in the first half of the year was 78.5%.

Kang thinks the on-going tax reform, which is expected to have a great effect on the income growth of the working-class and middle-income groups, will play an important role in boosting consumption.