Special Report: Global Financial Crisis

    BEIJING, Jan. 9 (Xinhua) -- China's economy will start to recover in the second half of the year as the massive fiscal stimulus takes effect, renowned economist Cheng Siwei told a conference on innovation here Thursday.

    The economy will regain full steam in 2011, according to Cheng, former Vice-Chairman of the Standing Committee of the National People's Congress.

    The 4 trillion yuan (585 billion U.S. dollars) package unveiled in early November will start showing a gradual effect in the second half, the Xinhua-run China Securities Journal quoted Cheng as saying on Friday.

    He estimated that the economy grew about 8 percent during the fourth quarter of 2008, down from 9 percent in the third quarter and 10.4 percent in the first half.

    The property market will only start to recover during the second half, despite government measures to spur home sales, as buyers' expectations of further price declines will take time to change, Cheng added.

    China is targeting 8 percent gross domestic product growth for 2009 to ensure sufficient jobs and safeguard social stability, Liu Mingkang, Chairman of the China Banking Regulatory Commission, said on Dec. 13.