In addition, the government's policy fine-tuning since July, as well as the stable growth of the infrastructure and real estate sectors, will help stabilize growth and improve market sentiment.

The fast growth in credit earlier this year will also have an effect in the second half, he said.

Liu Ligang, chief economist in China with ANZ Group, said, "China's overall economic growth shows a positive situation, along with the accelerated implementation of fiscal plans".

"For this year, about 58 percent of the fiscal budget will be used in the second half, and the government has planned some extra investment spending that can provide about 200 billion yuan, or 0.8 percent of the whole-year GDP," Liu said.

Another sign of stable growth is that the financial market has shown moderate fluctuation, although liquidity remains tight, he added.

According to the statistics bureau, the PMI in August for large enterprises increased to 51.8 from 50.8 in July, staying above 50 for the 12th consecutive month. But that for small companies fell to 49.2 from 49.4.

Zhao Qinghe, a senior economist with the statistics bureau, said the figures showed that small manufacturing businesses still face challenges, which needs more supportive government policies.

HSBC Holdings released its preliminary reading of the August PMI earlier, showing a four-month high of 50.1, up from 47.7 in July, also the first expansion in the sector since May. The bank will report the final PMI on Monday.