Stimulus scheme in need of reboot

Economic data in recent months has shown meaningful improvement on the back of a series of government stimulus measures, which seem to have put a stop to China's latest slowdown, which was highlighted by first-quarter growth decelerating to an 18-month low.

While doubts are clearing about whether Beijing can fulfill its 7.5 percent full-year growth target, worries have surfaced about the stimulus itself, which are reminiscent of the policies that created the problems in the Chinese economy in the first place.

In July, the official manufacturing Purchasing Managers Index reached its highest level this year at 51.7. Profits of Chinese industrial companies rose 17.9 percent year-on-year in June, up sharply from an 8.9 percent rise in May, according to the National Bureau of Statistics. The bounceback came amid Beijing's policy accommodation.