It’s been a BIG week for economic policy in China.
- On September 24, the central bank (PBoC) rolled out a range of monetary support measures to bolster the economy, boost share prices, and provide property developers with financial relief.
- On September 26, the Politburo surprised everyone by dedicating its September meeting to the economy, with the meeting readout strongly hinting that more fiscal support is coming.
In this episode, Trivium Co-founder Andrew Polk and Head of China Markets Research Dinny McMahon discuss:
- Why rates were cut, even after the PBoC said cuts are increasingly difficult
- The implications of the reserve requirement ratio (RRR) cut and why PBoC Governor Pan Gongsheng took the unusual step of providing forward guidance about a potential additional cut
- Why the PBoC is prepared to throw up to RMB 2.4 trillion in central bank funding into the stock market
- What a fiscal stimulus from Beijing might look like
The Trivium China Podcast