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The ferrous complex struggled on August 31, 2022:
There’s no help coming. Pantheon:
We see little scope for relief for the services or construction sectors. Policymakers have signed-off on some additional stimulus for the latter, but less than expected. Local governments have been given an additional bond issuance quota of RMB 500—RMB 1.5T had been rumoured—and urged to utilise it by the end of October, to support near-term growth. But the same problems remain. Local government revenues are under pressure, and the profitable investment projects are largely already underway. The will, and ability, to spend the funds as directed will be lacking.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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