Economic dissent at the top

CHINA ADVISORY - Report 17 Mar 2022 by Andrew Collier

The volatile Chinese equity markets forced economics czar Liu He to make a statement quieting the markets. That has led to expectations of a new stimulus, including state promotion of equities (the “national team”). Although Xi Jinping dislikes volatility, whatever stimulus measures that are adopted are unlikely to have a substantial impact on the economy. The past year’s tightening has been proof that, despite collapsing property companies and rising unemployment, the government plans to stay the course…at least that’s my best guess currently.

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