Too early to bet on a rebound in China stocks- Alpine Macro

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Too early to bet on a rebound in China stocks- Alpine Macro

Investing.com-- Chinese stocks are unlikely to see a sharp rebound in the near-term, Alpine Macro analysts warned, citing growing concerns over a sluggish growth outlook and laggard policy support from Beijing.

Alpine Macro flagged a “disturbing” deterioration in money and credit figures in the country, indicating weak private and business spending. The investment firm said policymakers were downplaying the warning signals, and that recent bond issuances by the government, to address funding shortfalls, had also fallen behind.

Alpine Macro compared China’s slowdown to a stagnation seen in the Japanese economy since the early-1990’s- a stagnation that the country is still struggling to break out of. Beijing appeared to be making the same mistakes that Japan made in the 1990’s, where the government dragged its feet in rolling out counter-cyclical measures.

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