Can China fill its property black hole?


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.

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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.