China's economy is showing signs of strain despite attempts to present a rosy picture. Growth has fallen short of the Communist Party's expectations, prompting anticipated monetary and fiscal responses to counter ongoing deflationary pressures in the crucial real estate sector.

In the second quarter, China's GDP grew by 4.7% compared to the same period last year, according to the National Bureau of Statistics. This figure is below both the 5.3% growth rate from the first quarter and the 5.0% forecast by economists surveyed by The Wall Street Journal. This slowdown increases the pressure on China's leadership as they gather for a pivotal political summit this week to bolster confidence.