NEW YORK bank JP Morgan and Melbourne bank ANZ have raised their 2023 economic growth forecast for China, after August economic numbers offered some signs of stabilisation in the world's second-largest economy, reports Reuters.

Both raised their GDP forecasts 20 basis points to five and 5.1 per cent respectively, with JPM saying notable recovery in retail sales and rise in service activity were the biggest surprises.

China's factory output and retail sales grew at a faster pace in August, but tumbling investment in the crisis-hit property sector threatens to undercut a flurry of support steps that are showing signs of stabilising parts of its wobbly economy.

Haibin Zhu, economist at JPM, said that government growth-stabilisation policies announced since mid-August have been incremental but extensive, and will likely seep into the real economy in coming months.