China，now the world's second largest economy, ought to maintain stable policies in the coming months to guide its economic growth.

On Monday, The People's Daily said in a front page editorial that China should try to balance a number of critical economic factors, including keeping a tight macro-control on soaring housing prices – a major grievance of the China's urbanities, while maintaining steady economic growth. 

Meanwhile, economist Andy Xie wrote in a column for the Caixing Magazine that Beijing ought not pursue double-digit economic growth rates as the economy needs urgent retooling to improve its mix and sustain a relatively fast development later. Xie, who successful forecasted the 1997-98 Asian financial melt-down, warned the government that it is risky to rely too much on bloated real estate sector. 

Xie recommended Beijing vigorously grow its infrastructure, such as high-speed railways and extending its expressway network, and investing heavily on technology, in order to muster the trunk of economic expansion. 

"Stability is the key word for economic control in the second half of this year: stable macro-economic policy is the basic tone, and fiscal support to economic growth must be maintained," the People's Daily editorial said.

Some analysts have suggested Beijing authorities lean towards policy relaxation, including another stimulus spending plan, in coming months to prevent a sharp economic slowdown. There are estimates that China's growth rates will slow down to around 9 percent in 2011, after a blistering 11.1 percent expansion in the first half this year.