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15 Aug 2013
Flash: Chinese economic stimulus on the horizon? – Deutsche Bank
FXstreet.com (New York) - The evidence of increasing signs of economic stimulus is building in China, notes Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Key quotes
According to Hong Kong’s South China Morning Post, China Development Bank (CDB) has signed MoUs with three mainland provincial governments (Hebei, Jiangsu, and Qinghai) to offer financial support for a variety of local projects ranging from a new airport to public housing.
This follows on from an earlier report by the same news outlet that the Agricultural Bank of China has signed an agreement with the Shanghai Government last week to extend credit worth RMB250bn (or 12.5% of Shanghai’s 2012 GDP) to support China’s second Disneyland project and pay for improvements needed to implement Shanghai’s free-trade zone.
On top of these, China Daily yesterday noted that Beijing authorities are aiming to boost the consumption of information products and services and make the sector a new engine for boosting domestic demand. China’s consumption of information products and services is expected to grow at an annual pace of at least 20% to reach CNY3.2 trillion ($518 billion) by the end of 2015, according to a guideline released by the State Council yesterday.
“Clearly these are far from the ‘big-bang’ approaches in the wake of the Lehman crisis but these headlines seem to suggest that targeted support is being ‘quietly’ released to try to stabilize growth.”
Key quotes
According to Hong Kong’s South China Morning Post, China Development Bank (CDB) has signed MoUs with three mainland provincial governments (Hebei, Jiangsu, and Qinghai) to offer financial support for a variety of local projects ranging from a new airport to public housing.
This follows on from an earlier report by the same news outlet that the Agricultural Bank of China has signed an agreement with the Shanghai Government last week to extend credit worth RMB250bn (or 12.5% of Shanghai’s 2012 GDP) to support China’s second Disneyland project and pay for improvements needed to implement Shanghai’s free-trade zone.
On top of these, China Daily yesterday noted that Beijing authorities are aiming to boost the consumption of information products and services and make the sector a new engine for boosting domestic demand. China’s consumption of information products and services is expected to grow at an annual pace of at least 20% to reach CNY3.2 trillion ($518 billion) by the end of 2015, according to a guideline released by the State Council yesterday.
“Clearly these are far from the ‘big-bang’ approaches in the wake of the Lehman crisis but these headlines seem to suggest that targeted support is being ‘quietly’ released to try to stabilize growth.”