Economists list steps for investor confidence

China's policymakers must make greater efforts to stabilize investor confidence as the country is facing the pressure of a slowdown in housing investments this year, economists said.

"Our advice for policymakers is to reduce business taxes and fees, shore up the weak spots of the economy, close 'zombie enterprises', and break the monopolies of State-owned enterprises," said Qu Hongbin, co-head of Asian economic research and chief economist for Greater China at HSBC Holdings PLC.

"This will help stabilize the confidence of private companies, prevent private investments from declining further. It will hedge against the risk of a drop in real estate investments and ease the pressure of capital outflows," said Qu at a media briefing in Beijing.