(Yicai) Nov. 25 -- Several experts at the International Finance Forum expressed confidence that China will achieve the gross domestic product growth target of around 5 percent this year but warned of many challenges ahead.

China's economy will likely expand 4.9 percent this year from the previous one, but the figure could reach 5 percent or even 5.1 percent, Chang Shu, chief Asia economist of Bloomberg, said on the sidelines of the forum held in Hong Kong from Nov. 22 to 23.

Steven Barnett, the senior resident representative in China of the International Monetary Fund, predicted China's GDP to grow 4.8 percent this year.

China's package of incremental policies has shown effects, with the countercyclical adjustment of fiscal and monetary policies at the macro level reflected in a package of policies including a new debt for equity swap policy reaching CNY12 trillion (USD1.66 trillion) over five years and policies to stabilize the real estate market and boost the capital market. In addition, large-scale equipment upgrades and consumer product trade-in programs are being promoted in multiple regions.

The Chinese government announced a series of stimulus measures in the summer, leading to an upturn in some industries, with slight growth visible, Chang noted, but added that this has not spread throughout the entire economy yet, and there may still be downside risks.

Several main economic indicators, such as the purchasing managers index, showed significant improvement signs last month, said Zhang Yansheng, chief researcher of China Center for International Economic Exchanges. This was directly related to the policies introduced this quarter, Zhang added.

Faced with the need to boost domestic demand in the short term, insufficient mid-term internal drivers, ongoing issues in the real estate market, and new hurdles to long-term transformation, implementing the next round of policies is crucial, Zhang pointed out.

The progress of revitalizing local government assets through financial and market-based means is not very satisfactory, Song Min, member of the IFF's academic committee and former dean of Wuhan University's School of Economics and Management, told Yicai. The central government's intervention to help local governments manage their debt is very appropriate, he noted.

In addition to reducing the debt burden, more funds are needed to help local governments complete their original tasks, Song said, adding that there will likely be more special bonds issued in the future, including allowing local governments to issue some debt.

Editor: Martin Kadiev