A slowing China doesn't need more stimulus

New data calls into question the assumption that China’s slowdown necessitates large-scale stimulus. Even if Beijing chooses this path, it's unlikely to work as intended.

Even with Monday’s 7.6 per cent decline, China’s stock market is on a historic tear, having risen more than 50 per cent over the past year. Yet much of this investor frenzy is based on three flawed premises: that China’s decelerating growth necessitates stimulus, that such stimulus will reduce borrowing costs for firms, and that lower borrowing costs will incentivise spending and ultimately jump-start growth.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles