China's economy to grow 7.5 pct in 2014: HSBC

Though some economic indicators point to slower third-quarter growth for the Chinese economy, banking giant HSBC has stuck to its forecast of 7.5-percent GDP growth in 2014.

China's economy bottomed out in the second quarter, with an above-consensus GDP print at 7.5 percent, and has continued on the path of recovery, HSBC said in its latest research report to clients.

Although there are some signs of weaker growth momentum, such as a lower HSBC manufacturing purchasing managers' index, the bank believes that China's policymakers will step up fiscal spending and targeted quantitative easing in the coming period to stabilize growth.

"From a cyclical perspective, more monetary easing measures are needed to support the official growth target of 7.5 percent this year," HSBC chief China economist Qu Hongbin said in the report.

HSBC cut its forecast for the country's third-quarter growth to 7.3 percent from its previous 7.4 percent, and said it expects the country's economic growth to climb to 7.6 percent in the last quarter.

It is widely expected that softer domestic demand may pull down growth in China's imports, investment and retail sales in September, raising concerns about the health of the world's second-largest economy and weighing on global markets.

Previously, the World Bank trimmed its 2014 growth forecast for China to 7.4 percent from 7.6 percent because it believes policies aimed at putting the economy on a more sustainable footing will sap growth. The International Monetary Fund left its forecast for China's growth this year unchanged at 7.4 percent.

In the first half of 2014, China's economy expanded 7.4 percent from a year earlier. The country is scheduled to release its third-quarter economic data on October 21.