Speaking to CNBC-TV18, Hartmut Issel of UBS says that fears in China market are driven mostly by technicals than fundamentals.
The comments come after the central bank cut interest rates on Friday for the sixth time in less than a year, and again lowered the reserve requirement ratio (RRR) for banks in a bid to jump start growth in China's stuttering economy.
Additionally, there has been a 300 basis points reserve requirement cut for financial and auto leasing companies and a 50 bps cut in reserve requirement for rural commercial and rural corporate banks.
Pension funds, which could previously only invest in bank deposits and treasuries, will now be able to invest up to 30 percent of their net assets in the country's stocks, equity funds and balanced funds.
The Caixin China services purchasing managers index (PMI) for July rose to 53.8, well above the 50-mark separating contraction from growth and up from June's 51.8; it was the highest reading since August 2014.
The People`s Bank of China (PBoC) reduced the reserve requirement ratio for banks by 100 basis points on Sunday - its second cut in two months. That followed data on Saturday showing home prices dropped for the eleventh straight month in March.
China's central bank cut the amount of cash that banks must hold as reserves on Wednesday, the first industry-wide cut since May 2012, adding more liquidity to the world's second-biggest economy to help boost bank lending and combat a growth slowdown.
A deepening global crisis saw the Peoples Bank of China (PBoC) delivering a surprising 25 basis points rate cut. Todd Lee, chief China economist, IHS Global Insight says any further monetary easing in China will depend on the severity of the situation.
China`s surprise 25 basis point cut in benchmark lending rates on Thursday caught economists and the markets by surprise, and could signal the economy is slowing faster than previously thought.
China's central bank cut the amount of cash that banks must hold as reserves on Saturday, freeing an estimated 400 billion yuan for lending to head-off the risk of a sudden slowdown in the world's second-largest economy.
The Chinese central bank`s move to boost economic growth by cutting the reserve requirement ratio (RRR) by 50 basis points over the weekend, for the second time in almost three months, is part of its "fine-tuning" of monetary policy, say analysts who expect more such easing in 2012.
Markets rose across the board on Monday as policy easing by China and expectations that Greece will secure a second bailout buoyed investor appetite for riskier assets.
China`s central bank is likely to announce further cuts to banks` reserve requirement ratios to boost slowing growth, a number of analysts told CNBC on Wednesday, a day after the country`s premier warned of a "difficult" period ahead for the economy.
Last fortnight proved to be vulnerable for high yielding currencies as political uncertainties over the implementation of EFSF were mounting on the Euro zone.
All international commodities extended their positive rally on the back of a few positive developments in the money markets in major developed and developing countries.
In the previous fortnight, the Indian markets rallied on the back of developments in the international arena. They also agreed to reduce the interest rate on dollar liquidity swap lines by 0.5%.
China's central bank increased the reserve requirement ratio for its commercial banks by another 50 basis points on Thursday, extending its campaign to calm prices despite initial signs of slowing in the economy.
On the back of the rising concerns on food inflation, the Chinese government has hiked the Reserve Requirement Ratio (RRR) for banks by 50 bps as a part of its freshly updated monetary policy. CNBC-TV18's Sonia Shenoy talks to Kirby Daley from Newedge Group to get a clearer perspective on the consequence of the newly declared RRR hike.