Invesco's Global Market Strategist for the Asia-Pacific region (excluding Japan), Zhao Yaoting, stated that China today introduced multiple stimulus policies, believing that these measures can directly boost China's economic growth back to the target level of 5%. The most important rate cut is aimed at existing home loans. People's Bank of China Governor Pan Gongsheng stated that the expected rate cut for existing home loans could reduce interest expenses by 150 billion yuan, thereby stimulating consumption and investment.

Looking ahead, he indicated that significant stimulus policies may need to be introduced for both supply and demand to change market sentiment and boost the economy. The Chinese government is likely to soon introduce fiscal support policies, which can help revitalize the economy and promote economic recovery. In the remaining time of this year, government spending is likely to increase.

He believes that this may be a good time for investors to re-enter the Chinese stock market. The dividend yield of Chinese stocks is higher than the yield on government bonds, widening the interest rate differential to a long-term high level, indicating that investors expect corporate dividends to be significantly reduced. However, he believes this is unlikely and suggests that investors may consider buying Chinese stocks at the current level.