BEIJING — China's economy will see continued recovery in the second half of this year amid a rebound in both investment and consumption, analysts said.

Economic activities will accelerate further in H2, due to an increase in total social financing, said investment bank CICC in a research report.

Recovery in infrastructure and property investment will shore up growth in the second half, while consumption and exports are also likely to warm up as national income growth continues to improve, it said.

China's economic activities are recovering, and the latest data on industrial output, retail sales and investment show an accelerated pace of resumption across the board.

Factory activities continued to pick up in May with value-added industrial output soaring 4.4 percent year-on-year, and the decline in fixed-asset investment narrowed in the first five months of 2020, official data showed on June 15. 

Retail sales of consumer goods, a major indicator of consumption growth, declined 2.8 percent year-on-year in May, rebounding from a drop of 7.5 percent in April.

China's economic recovery is likely to continue in the second half, but it may face the headwinds of a potential second wave of COVID-19 outbreak and decoupling pressures, UBS analyst Wang Tao said in a research note.

Given the continued domestic demand recovery and stronger-than-expected exports in April-May, UBS expected China's GDP to see positive growth in the second quarter, thereby revising its previous forecast.