China's official second quarter results are due out next Friday -- fresh forecasts are predicting that China's economy will expand 6.7 percent in the second quarter with domestic demand and fixed asset investment leading the way.

However, the forecasts cautioned that much of the capital has gone to property, not the real economy, and there could be possible bubbles in the long run.  Analysts see a number of strong areas in China's economy including investments, innovation, and state-owned enterprises, and recommend robust fiscal policies to balance stability and growth.