China: Beijing steps up efforts to stabilise growth – Standard Chartered

Analysts at Standard Chartered explain that China’s October data was a mixed bag as fixed asset investment (FAI) and industrial production (IP) growth beat market expectations, but retail sales and total social financing (TSF) underperformed.

Key Quotes

“Amid growing downward pressure, Beijing has further increased efforts to stabilise growth and expectations. Stimulus measures include: (1) assurances of support from the government to private companies, including easing their tax burden and financing conditions, improving the regulatory environment and safeguarding their property rights; (2) central government guidelines on accelerating infrastructure investment in poor and rural areas and on transportation, energy, environmental protection and social welfare; (3) increased fiscal support for ongoing investment projects and reasonable funding demands from local government financing vehicles.”

“While sentiment is still weak, such measures should contain near-term downside risk to China’s economy. Beijing has the tools to stem the economic slowdown.”