Buildings in Shanghai, on Sept. 11.
Photographer: Qilai Shen/BloombergXi’s Economic Adrenaline Shot Is Only Buying China a Little Time
Tuesday’s hastily arranged briefing delivered a sweeping policy package. Economists say reversing the slump will require much more.
First he took a sip of tea to gather his composure. Then Chinese central banker Pan Gongsheng unleashed one of the country’s most daring policy campaigns in decades.
In what amounts to a massive adrenaline shot for an economy on the cusp of a deflationary spiral, the governor of the People’s Bank of China and other top financial officials unveiled a series of easing measures that market watchers had wanted for weeks at a rare, high-level press conference on Tuesday in Beijing. They include interest rate cuts, more cash for banks, bigger incentives to buy homes and plans to consider a stock stabilization fund.