Key Points
- China’s latest policy signals have a bigger impact on sentiment than resolving deeper issues such as real estate, analysts said.
- “The ‘shock and awe’ strategy could be meant to jumpstart the markets and boost confidence,” said Ting Lu, chief China economist at Nomura, but eventually it is still necessary to introduce well thought out policies to address many of the “deep-rooted problems.”
- “China’s policy moves to lower interest rates have not helped improve confidence among consumers who are fearful of borrowing in the first place,” Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said in an email.
