Business Maverick: China adds 1 trillion yuan more of stimulus to rescue growth

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The Asian super power has stepped up its economic stimulus with a further 1 trillion yuan (R2.466-trillion) of funding largely focused on infrastructure spending, support that likely won’t go far enough to counter the damage from repeated Covid lockdown...

Economists were relatively downbeat on the measures, while financial markets were muted. Yield on 10-year government bonds rose 1 basis point to 2.64% in early Thursday trading. China’s CSI 300 Index rose as much as 0.6% in morning trading before paring gains to trade up 0.1%.

The meeting sent a signal: “Don’t expect massive additional stimulus,” according to Bruce Pang, head of research and chief economist for Greater China at Jones Lang LaSalle. He added that the language used in the announcement suggested “the possibility of adopting extraordinary tools such as special sovereign bonds or increasing the official budget deficit has decreased.”

 

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