The surveys done on China's factory and services sectors have shown stubborn weakness in the world's second-biggest economy in March. This has supported the fact that Beijing will have to roll out more policy support to avoid a severe slowdown.

According to three different surveys, Chinese companies shed jobs last month due to their struggle with soft demand and deflationary pressures.

This has suggested that in the first quarter of 2015, the economic growth may have slipped below 7%, which would be the weakest in six years.

Zhang Zhiwei, an economist at Deutsche Bank in Hong Kong, said, "We expect first-quarter growth to drop to 6.8 percent and the government might start easing policies significantly in the second quarter".

Zhang added that the central bank may relax banks' reserve requirement ratio (RRR) by this week or next.

Zhang, while referring to a fall-off in government revenues, said that the growth has faced headwinds from the property slowdown and a fiscal slide. Many economists are worried that the decline in government revenues could further dampen economic growth by crimping investment.

As per many economists, there can be further interest rate cuts towards the end of this year. Additional measures can be taken to help the weakest sectors, including the housing market.

On Monday, the regulators have announced a cut in downpayment requirements for home buyers. This has happened for the second time in six months.

On February 4, China reduced the amount of deposits that banks must hold as reserves. It happened three days after an official survey of the factory sector showed an unexpected activity shrank to a 2-1/2-year low.

The official Purchasing Managers' Index (PMI) was released on Wednesday. It was not that terrible, but pointed out that activity was lukewarm at best.