- Analytics
- News and Tools
- Market News
- China: Trade deal and more stimulus needed to stabilise growth – ABN AMRO
China: Trade deal and more stimulus needed to stabilise growth – ABN AMRO
Arjen van Dijkhuizen, the senior economist at ABN AMRO, thinks that China’s rise of Caixin’s manufacturing PMI in recent months suggests that confidence amongst private firms is improving, reflecting targeted stimulus and rising hopes of a U.S.-China deal.
- “Hard data show that this has not led to a pick-up in private investment (yet). All this implies that for the Chinese economy to stabilize a ‘Phase one agreement’ marking the end of the US-China tariff tit-for-tat would be welcome, as the escalation of this conflict has proven to be a clear headwind – on top of the effects of China’s previous financial deleveraging campaign. It also shows that more stimulus is needed to support domestic demand.
- We continue to hold the view that Beijing will step up piecemeal stimulus. And we still expect them to refrain from aggressive easing given longer-term constraints such as the need to keep overall debt levels in check and to prevent a housing bubble. Recent measures lend support to this view.
- Following previous mini steps including further RRR cuts, in early November the PBoC cut the rate on its medium-term lending facility by 5 bps, to 3.25%. And this week, Beijing announced to lower capital requirements for certain infrastructural projects.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
