From Bloomberg:
China will speed up construction projects and other measures to support economic growth after a slowdown in industrial output and investment boosted risks of missing a 7.5 percent expansion target for the year.
The nation will “seize the moment to roll out already-determined measures in expanding domestic demand and stabilizing growth,” the State Council, or cabinet, said in a statement last night after a meeting. China will “accelerate preliminary work and construction on key investment projects with timely assignment of budgeted funds,” the cabinet said.
Earlier than I expected, and let’s wait to see details, but “accelerate preliminary work and construction on key investment projects” has a familiar ring to it!
Still, it hasn’t helped the ASX or iron ore miners. There are lots of mixed signals today. The PBOC is busy draining liquidity with reverse repos and it’s fixed the yuan at low levels while hot money outflows have taken it through the so-called “red-line” at 6.2. The Fed is tapering and is more aggressive about rate rises than thought, sucking capital into the US dollar and no doubt putting the double scare on US/CNY carry-traders.
And now we’ve got rumbles of stimulus as well. Not jumping to conclusions about what this all means for Chinese growth is probably wise.
