The “real” China stimulus plan

CHINA ADVISORY - Report 10 Apr 2020 by Andrew Collier

In a key meeting of the Politburo on March 28, China proposed a series of stimulus measures. However, these measures will account for about half the size of the 2009 stimulus as a percentage of GDP. In addition, some, such as SME loans, will be slowed due to bureaucratic delays. We believe a second, less transparent stimulus, is likely to happen through the banking system, in the form of infrastructure spending, similar to what China witnessed post-GFC.

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