China’s Stocks Need More Help Than Central Bank Cuts Offered
- CSI 300 tumbles despite easing as national team steps back
- Goldman thinks China might be withholding fiscal power
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China’s stock market is slumping despite the central bank’s interest-rate cut this week. Equities continue to face challenges from slowing domestic consumption and harsh international headwinds. Industrial metals such as iron ore and copper, often regarded as a barometer of the health of the Chinese economy, are also slumping.
Meanwhile, China is likely withholding its fiscal firepower in reserve to prepare in case Donal Trump wins this year’s US presidential elections, according to Andrew Tilton, Goldman Sachs’s chief economist for Asia Pacific. This would allow the Asian nation to implement more aggressive stimulus should the US-China trade tensions worsen.