No. But it can mitigate the damage. Goldman on the rumoured round of new fiscal stimulus.
1. According to a Bloomberg report today (10 October) by quoting people familiar with the matter (unconfirmed), “Chinese policymakers are considering raising the budget deficit for 2023 and issuing at least RMB1tn (USD137bn) of additional sovereign debt for spending on infrastructure such as water conservancy projects”.
This is somewhat similar to commentary in June when some offshore media including Wall Street Journal reported a likely approval of RMB1tn central government special bond (CGSB) to boost infrastructure investment, which hasn’t materialized as of now.
