On May 7, China unveiled a 10-point policy package aimed at enhancing market confidence, boosting long-term liquidity and supporting innovation-driven growth. The People's Bank of China, the country's central bank, cut its policy rate and reduced the reserve requirement ratio. Additional measures were announced to shore up technological innovation, consumer services and businesses impacted by U.S. tariffs. Now, China's economy grew by 5.4% during the first quarter of this year and value-added industrial output expanded 6.5% year on year. Retail sales also grew by 4.6% in the first quarter. Against the better-than-expected quarterly figures, why is China rolling out these measures? How will they affect the economy in the short to mid-term? And how have markets reacted so far?

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