Liu Qiao, dean of Peking University's Guanghua School of Management, said in an exclusive interview with China Daily that "bold innovations" in fiscal policy could hold the key to addressing weak consumer confidence.

New policy tools worth considering in the second half of the year, Liu said, include fiscal transfers or cash subsidies for low-income groups, broadening consumption incentives beyond traditional big-ticket items to everyday goods and services, and greater central government support for fertility and childcare.

"With proactive fiscal measures — such as the issuance of special central government bonds or a modest increase in fiscal deficit with spending focused on boosting consumption, China is well-positioned to meet its full-year growth target," Liu said.