08:10 AM EDT, 09/25/2024 (MT Newswires) -- This week, China's State Council hosted a press conference that was attended by the heads of various financial regulators, including the governor of the People's Bank of China, the minister of the National Financial Regulatory Administration and the chairman of the China Securities Regulatory Commission, noted Nomura.

Together, they announced a batch of supportive measures, including a 50bps RRR cut, a 20bps policy rate cut, a 50bps cut to rates on existing mortgage loans, a 10pps reduction of the down payment ratio on second homes, and specific policies to provide liquidity to both equity and property markets.

While these measures will boost confidence to some extent, the bank doesn't believe these monetary and financial policies alone are enough to arrest the worsening economic slowdown.

Nomura thinks fiscal stimulus should take the front seat, although wthe bank encourages investors to manage their expectations when financial pundits ratchet up their calls for potential fiscal stimulus.