As communist China turns 75 can Xi fix its economy?
Published On Oct 3, 2024, 7:17 PM
China announced a series of stimulus measures aiming to boost its struggling economy as it celebrated the 75th anniversary of the People's Republic. This includes support for the property sector, cash handouts for poorer citizens, and measures to stabilize the stock market, resulting in significant gains in Chinese stocks. However, economists express skepticism about the effectiveness of these measures, noting that deeper structural issues must be addressed for sustainable economic growth. The current tactics may merely provide temporary relief without resolving the underlying confidence crisis in the economy.
Stock Forecasts
FXI
Positive
With the China's stock rally driven by recent stimulus measures, there is potential for further growth in the short term. However, the underlying economic issues remain a concern, and long-term stability will depend on how effectively these measures restore confidence and address deeper problems.
KWEB
Negative
The ongoing challenges in the Chinese economy, particularly in the property market, could weigh on the concerted efforts for growth. If the fiscal measures fall short or fail to significantly change market dynamics, a corrective pullback could be expected.
Related News
China Vows to Unleash More Borrowing to Spur Economy and Strengthen Banks
Oct 11, 2024, 11:51 PM
The finance minister said Beijing would sell bonds to supplement spending and help banks but did not detail how much.
Chinese finance minister to deliver highly anticipated briefing on stimulus
Oct 11, 2024, 9:57 PM
Analyst projections for how much fiscal stimulus is needed range from around 2 trillion yuan ($283.1 billion) to more than 10 trillion yuan.
How Xi’s crackdown turned China’s finance high-flyers into ‘rats’
Oct 10, 2024, 7:17 PM
Chinese authorities have been cracking down on businesses from real estate to technology to finance.