No rapid rebound for China’s economy, but stimulus may lift sentiment: economists

INVESTORS should not expect an acceleration in China’s economic recovery, nor a pop in markets, even if talked-about stimulus measures are implemented, economists and analysts said.

This is because the government is still dealing with concerns about excessive leverage, financial stability and overheating.

“For instance, property-easing measures are intended to defuse the property crisis rather than to reinflate the housing market, and therefore cannot be expected to power a rapid housing recovery,” said Maybank Investment Banking economist Brian Lee.