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We've heard of 'Bernanke put', but a 'Li Keqiang put’?

Chinese Prime Minister Li Keqiang
Fabrice Coffrini | AFP | Getty Images
Chinese Prime Minister Li Keqiang

China's Premier Li Keqiang is likely to unveil measures in coming months to prevent growth in the world's second largest economy from falling too sharply, say analysts at Bank of America Merrill Lynch in what they describe as the "Li Keqiang put."

The phrase stems from the "Bernanke put," a term used to describe an implied floor under the market created by Federal Reserve Chairman Ben Bernanke maintaining aggressive monetary stimulus.

(Read More: Will Bernanke surprise markets again this week?)

In the context of China, where data on Monday showed the economy slowed for a second straight quarter, the "Li Keqiang put" means that China's premier is likely to take some action to make sure Beijing achieves its 7.5 percent growth target for 2013.

"The 'Li Keqiang put' means that in the first couple of years, Premier Li will try to prevent a growth hard-landing and a financial crisis," said analysts at BofA Merrill Lynch in a note.

"That's why we expect Li's cabinet will introduce some measures to arrest the growth slowdown (in year-on-year terms) in the next couple of quarters," they added, saying that they expect growth-supportive measures such as infrastructure projects that can be used to fight pollution and encourage the growth of consumption.

(Read More: Just how low will China allow growth to go?)

Li Keqiang, the man in charge of China's economy, formally became Chinese premier in March and will hold the post for the next 10 years.

So far China's new leaders have expressed a tolerance for a slowing economy as China makes a shift away from a reliance on exports and dependence.

7.5%: The floor for growth?

"As the government is highly unlikely to accept missing the 7.5 percent growth target, we expect modest, targeted measures in the third quarter to boost aggregate demand – accelerated approvals of infrastructure projects, improving interbank liquidity and more fiscal spending," Dariusz Kowalczyk, senior economist at Credit Agricole, said in a note.

Data on Monday showed the Chinese economy grew an annual 7.5 percent in the second quarter of the year, in line with expectations, down from 7.7 percent in the first quarter. Some analysts forecast the economy could slow to as low as 4-to-5 percent by the end of the decade.

(Read More: Watch out: China's growth could fall to 4-5% by 2020)

"There are lot of things going on in China that suggest the government is trying to make some changes and that some pain is required in order for those changes to take place. And we're keen to understand whether the government will stay the course or if they will pander to investors," said Marc Desmidt, managing director at asset management firm BlackRock Asia-Pacific on CNBC Asia's "Squawk Box" on Tuesday.

"We'd like to see them hold the course. They have 10 years and they [China's politicians] know they have a couple of years to make the changes and then reap the rewards," he said, adding that there was a fine line between whether or not to head back down the stimulus path.

By CNBC's Dhara Ranasinghe; Follow her on Twitter: @DharaCNBC