Indeed.
Excellent reporting from the China team of the Financial Times on why Xi seems to have agreed to a bit of fiscal stimulus
1/
So far it is a stimulus with a lot of Chinese characteristics -- refinancing existing debt isn't usually considered a stimulus (China is changing how the debt if financed tho), and buying up existing property is a bit of a bailout ...
2/
But no sign yet of real direct support for households:
"Many agree that, while Xi’s thinking on the stimulus has changed, there is no sign yet of determined reforms or spending to rebalance the economy towards more household consumption"
3/
My sense, based largely on the anecdotes I heard on a fairly recent trip to China, is that pressure on local governments was in fact the main reason for the policy shift.
4/
Excellent reporting, and perfectly timed to help inform the discussion on China at the IMF's annual meeting this week
5/
A related take from Bloomberg's Shuli Ren
Indeed.
Excellent reporting from the China team of the Financial Times on why Xi seems to have agreed to a bit of fiscal stimulus
1/ So far it is a stimulus with a lot of Chinese characteristics -- refinancing existing debt isn't usually considered a stimulus (China is changing how the debt if financed tho), and buying up existing property is a bit of a bailout ...
2/ But no sign yet of real direct support for households:
"Many agree that, while Xi’s thinking on the stimulus has changed, there is no sign yet of determined reforms or spending to rebalance the economy towards more household consumption"
3/
My sense, based largely on the anecdotes I heard on a fairly recent trip to China, is that pressure on local governments was in fact the main reason for the policy shift.
4/ Excellent reporting, and perfectly timed to help inform the discussion on China at the IMF's annual meeting this week
5/
A related take from Bloomberg's Shuli Ren
yes
