Xi’s Stimulus Won’t Stay All Thunder, No Rain Forever
China’s economic policy pivot might be difficult to piece together right now, but it is for real.
Traders are searching for China’s magic number.
Photographer: Qilai Shen/BloombergIt’s been all thunder, no rain since China’s President Xi Jinping abandoned his fiscal austerity and embraced economic stimulus in late September. While minister-level officials have hosted a parade of press briefings, none spelled out a magic number. It’s been disappointing to stock traders that had expected a package to the north of 10 trillion yuan ($1.4 trillion).
Nonetheless, statements from top policymakers, as well as new tools they are creating, such as the central bank’s re-lending facilities to help companies buy back their publicly listed shares, are sending strong signals that a supercharged package is in the works.