What they say

More aggressive loosening measures are needed. The fall in the interbank interest rate in recent weeks clearly demonstrated the intent of the central bank to ease financing conditions. Further reserve requirement ratio cuts are necessary to lower real interest rates and we believe this is likely to happen in the coming weeks.

Song Yu, senior economist for China at Goldman Sachs

The downturn of the Chinese economy may continue, and we expect economic growth to stop declining by the third quarter. There is evidence to suggest that the pressure from the economic downturn is increasing. In fact, the Chinese economy is on the edge of deflation.