China's prospects worsen

Despite the incentive messages of the authorities in China, there are more forecasts that economic growth will remain limited in the medium term.

For 2024, the growth expectation fell from 4.9 percent to 4.8 percent. There is a large-scale loss of momentum in the sub-items of Chinese growth, especially consumption and declining real estate prices.

Although the Chinese Politburo took a dovish stance on policies, it did not meet expectations for large-scale stimulus. Nordea Markets Chief Economist Tuuli Koivu stated that he did not expect a stimulus on a scale that could accelerate Chinese growth.

"I see the risks on the downside. This is the new normal that we need to get used to," the renowned economists said.

Economists' forecast for a 25 basis point cut in Chinese reserve requirements for the July-September period remained unchanged, while the survey reflected the expectation for a 10 basis point cut in the one-year benchmark loan rate instead of 5 basis points.