China policies likely to remain growth supportive

But larger stimulus measures face constraints.

According to BBVA, fiscal policy will drive China growth through brisk infrasturcture spending and public housing construction, as well as selected tax cuts.

Here's more from BBVA:

While China’s policies will remain growth supportive, larger stimulus measures are constrained by a buildup in domestic financial fragilities. Fiscal policy will underpin growth through continued infrastructure spending, public housing construction, and selected tax cuts. On the monetary front, we expect interest rates to remain on hold during the rest of 2013, although the PBoC may be more accommodating by freeing liquidity into the banking system when needed through open market operations and adjustments in the RRR. Given the fragile performance of the external sector and the considerable currency appreciation to date, we expect very limited further gains in the RMB during the rest of the year, to 6.10 per USD.