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.

Doldrums continue to plague China's post-pandemic economy. Now the country's leaders are firing up a new round of plans to jump-start growth. It just might not be enough.

It is the first time I’ve ever seen the Chinese central bank directly use its own money to support the stock and real estate markets,” says Lu Xi, an assistant professor focusing on China’s economics at the National University of Singapore.

The world’s second-largest economy has struggled to rebound from the pandemic, leading financial authorities to cut interest rates and support the property market.

China's fresh stimulus measures went into effect on Friday, in line with central bank governor Pan Gongsheng's comments earlier this week, as Beijing moves quickly to boost fiscal support and economic growth.