China Economy: Key Updates from ASEAN+3 Macroeconomic Research Office
China's Shift in Economic Stimulus Strategy
The ASEAN+3 Macroeconomic Research Office (AMRO) has recently articulated that China is poised to announce measures for economic revival in a phased manner. As stated by Hoe Ee Khor, the chief economist at AMRO, this strategy is preferable to avoid a potential overleveraged market response similar to past approaches.
Gradual Measures over Huge Stimulus
According to Khor, the monetary stimulus initiated last month and anticipated fiscal measures constitute a series of actions that have been ongoing since last year. We've been informed that the scale of these measures will not be as monumental as the 4 trillion yuan stimulus package released in 2008.
Potential Impact on Property Sector
Upcoming measures will likely stimulate domestic demand, aimed particularly at revitalizing a beleaguered property market, which has faced escalating challenges since 2020.
- Bond purchases by the People's Bank of China are expected to enhance liquidity.
- There is a critical need to address rising default cases among highly leveraged Chinese developers.
- Khor advises that monitoring geopolitical factors, such as the US elections, may influence economic outcomes.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.