Bloomberg Daybreak: Asia Edition
China Stocks Extend Stimulus-Fueled Gains, UN General Assembly Underway
Sep 25, 2024
Leland Miller, Co-Founder and CEO of China Beige Book, joins Richard Harris, CEO of Port Shelter Investment Management, along with Bloomberg's Daniel Ten Kate and Derek Wallbank. They delve into China's recent stimulus measures and their implications for the global economy. The discussion highlights the current challenges in China's economy, including deflation and declining asset values. They also touch on the UN General Assembly's focus on global issues like inequality and the impact of U.S. foreign policy, particularly in the context of international conflicts.
28:42
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Quick takeaways
- China's economic stimulus measures face skepticism as businesses remain hesitant to borrow due to a pessimistic economic outlook.
- Political leadership significantly impacts economic recovery in China, as confidence in governance could boost consumer spending and investment.
Deep dives
Challenges of China's Economic Stimulus
China's recent economic stimulus measures aim to counteract a slowing economy impacted by high deflation and low consumer confidence. Despite reductions in interest rates and support for the property sector, there is skepticism about the effectiveness of these moves due to businesses' unwillingness to borrow in a pessimistic environment. Many firms are hesitant to invest while they perceive a gloomy future, as seen in the real estate market where households with significant wealth tied to property assets feel the negative impact of declining prices. The approach seems focused on setting a floor for the economy rather than igniting significant growth, reflecting a cautious strategy from the Chinese leadership.
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