China's rate cuts disappoint investors

Investors in China are disappointed with the recent rate cuts by the banks as they were hoping for more significant reductions. The five-year loan rate was cut more than expected, but there was no change in the one-year rate. Short-term interest rates have not been lowered either, which is a cause for concern for equity and bond markets. While rate cuts alone may not be enough to invigorate the Chinese market, a coordinated approach involving other measures such as property market fixes and lending support is needed.