China policymakers will struggle to give markets what they want, chief strategist says

Policymakers are doing little to soothe concerns surrounding China's ailing economy, Brian McCarthy, chief strategist at Macrolens told CNBC's "Street Signs Asia" on Wednesday.

"Chinese policymakers are going to continue to struggle to give the market what it wants, and what it needs, which is really some kind of plan to extract the economy from debt deflation in the wake of a massive property bust," he said.

The latest monetary policy announcement from the People's Bank of China (PBOC) saw the central bank cut the benchmark 5-year loan prime rate by 25 basis points earlier this week.

Many observers saw the move as an effort to boost the country's struggling property market, as the majority of mortgages are pegged to this rate.

"The intention is clear here that the PBOC wanted to do more to stabilize housing," Wei Yao, head of research and chief economist for Asia-Pacific at Société Générale, told CNBC's "Squawk Box Asia" on Wednesday.

A stabler housing sector is key to steadying the overall economy, she added.

Beijing's financial markets have been under pressure, as recent data has indicated that the world's second-largest economy may be slowing down, deflation remains persistent and the country's CSI 300 appears to be struggling. The economic issues have raised questions about the outlook for local investment.

Policymakers have been trying to counteract the trend with what McCarthy called "a string of half measures that, you know, weren't really satisfying market participants at all."

The 5-year loan prime rate cut was a more "aggressive" move within these decisions, he added.

But it isn't just about house borrowing costs, Société Générale's Yao said.

"The hope is that lower mortgage rates could revive sales, but actually the