China Vows Forceful Measures to Stabilize Markets, But Rally May Prove Fleeting Without Deeper Reforms
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In response to China's equity market rout, policymakers vowed to stabilize the market through forceful measures like PBoC rate cuts and establishing a market stabilization fund.
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The measures fueled a sharp rebound, but deeper issues like deflationary risks and lack of demand remain concerns.
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The market rally may not endure as China struggles with depressed confidence and entrenched property weakness.
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Current rescue efforts may only set a floor - more is needed to fix underlying weaknesses.
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More concrete stimulus like wider fiscal deficits and targeted property measures are likely needed to drive a sustained rally.