China's stimulus-boosted private sector is on track to lead the economy to a "self-sustained recovery" that could see growth hit 6.6 percent this year, according to HSBC.
And while that would only match last year's GDP result — the worst performance for the world's second-largest economy in 28 years — it is well above current consensus of about 6.2 percent for 2019.
Pessimism has engulfed the outlook for China's economy this year following 2018's performance as waning growth and the still-unresolved trade war with the United States cast long shadows.
The Chinese government last month set its GDP growth target for this year at between 6.0 percent to 6.5 percent, below last year's of about 6.5 percent. China is set to announce first quarter economic growth on April 17.
Alarmed by sliding economic indicators, the Chinese government in 2018 introduced measures, such as encouraging banks to increase lending, to bolster growth — moving away from a policy that had been aimed at reining in debt.
That looser stance is accelerating this year, with Premier Li Keqiang announcing fresh stimulus measures last month, including cuts in taxes and fees worth 2 trillion yuan ($297.73 billion).
HSBC said in a report Monday that recent economic data, including stronger manufacturing activity, show that "growth has bottomed and will gradually pick up in the coming quarters as the stimulus measures filter through."