Market Musings 290924: China: a “Big Bang” stimulus, or just another failed take-off?
Podcast (click on title): The employment puzzle: can central banks maintain stability?
Report (click on title):Beijing’s gift to the market ahead of National Day holiday?
In recent days, Chinese authorities have attempted to tackle the deep-seated problems centred on their property market slump and the consequent hit to domestic consumption.
According to the Economist publication, “At Last, China Pulls the Trigger on a Bold Stimulus Package”. Beijing has launched a wide-ranging economics stimulus package, including (for the first time) a USD 114bn war chest to boost the stock market, with a range of further measures aimed at helping the property market. There are hopes for more fiscal stimulus from the Chinese government in the weeks and months to come to support domestic consumption. Given that the Chinese authorities have specifically targeted the stock market this time, a liquidity-leveraged stock market rally could have further to go.
Note that already for the year to date, the Hang Seng China Enterprises Index (HSCEI, in green) of mainland Chinese companies listed on the Hong Kong stock exchange has...
