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CCTV Script 30/06/15

— This is the script of CNBC's news report for China's CCTV on June 30, Tuesday.

Welcome to CNBC Busines Daily, I'm Qian Chen.

You've heard of the "Greenspan put" and the "Bernanke guarantee", now get acquainted with the "Zhou put" as China's central bank pulls monetary levers to ease declines in the country's stock market.

According to Tommy Xie Dongming, economist at OCBC Bank, the "Greenspan Put" managed to avert further deterioration via interest rate cut and liquidity injection after Dow Jones suffered a record single day loss of 22.6 percent in 1987 stock market crash.

However, the continued prevalence of margin financing means that market volatility is here to stay, Xie said.

"We think further unwinding of margin trading taking advantage of any policy-led rebound may continue to create volatility in China's equity market," he added.

Steven Sun, head of Hong Kong and China equity research at HSBC shared a similar view : "Policy support could prevent further sharp market falls; yet investors will likely sell into the rebound to lower leverage. "

Chinese regulators have stepped up efforts to tighten margin activities in recent months to limit the risk of a bubble forming in the market.

Indeed, there is also the prospect of further monetary stimulus, experts say.

Mark Williams, chief Asia economist at Capital Economics, wrote to CNBC in a note that there is plenty of room to cut benchmark interest rates further. But People's Bank officials may baulk at expending too much monetary policy ammunition in an effort to support markets, particularly if the spillover from a market slump to the economy outside the financial sector is limited.

In addition, for analysts who are bullish about the Chinese stock market, here's what they got to say.

[ANDREW SULLIVEN] "its still a good map. There's a broader range of selling but fundamental institutions are still buying but cautiously. They are looking at valuations, a lot of that will be limited orders. We do still see people selling but a lof of that is rotation. So its still, it makes some arc, you know, you will have to have both sides."

[SHK Private, Head of Investment Strategy] "3 mkts in china, we are positive in shanghai and HK but we are negative on Shenzhen on valuatioins. Hong Kong's Hang seng index is going to hit 30K by the end of the year. Insureance and healthcare are 2 sectors we like as they are ridingon the trend of rising middle class consumption"

However, some experts are skeptical that any such measures will be effective in the long-run.

[DONALD STRASZHEIM, Evercore ISI, Senior Managing Director & Head, China Research] "Well, I think investors always ought to think about sectors and companies as well as the overall market, and the overall economy for that matter as well. 06:49:45 There will be sectors in China, I'm sure that do well. We love the tourism sector in China, healthcare is a great long-run growth sector in China, the whole move to advancing the industrial capacity and efficiency in China is a good one. Energy and environmental cleanup are important, positive as well, so it's not like everything is bad, but those big industrial sectors just don't look good to us at all."

CNBC's Qian Chen, reporting from Singapore.

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