China's latest stimulus package may not be enough to encourage households and businesses to borrow and banks to lend, one researcher says.

The interest rate cuts and further economic stimulus announced last week by Chinese authorities continue to boost the stocks representing interests in that nation.

China’s policymakers have blinked at last. For 18 months, even as deflation set in and economic sentiment curdled, stimulus was half-hearted and piecemeal. Then last week came a belated turnaround. Officials unleashed a range of easing measures,

For banks, the lower mortgage rates could hurt profits in the short term. China’s drastic fiscal stimulus measures could revive an economy weighed by weak domestic spending and a troubled real estate sector,

China’s most significant monetary stimulus package since the Covid-19 pandemic has lifted market sentiment but experts have found the policy moves wanting. In commentaries released this week, researchers have pointed out that the acute weakness in credit demand is likely to render the relaxation in borrowing costs ineffective.