Anticipation for Pragmatic Economic Stimulus from China

Monday, 19 February 2024, 17:18

The recent State Council meeting in China, overseen by Premier Li Qiang, emphasized the need for 'pragmatic and forceful' economic action. Despite the lack of specific steps taken, the statement led to a 1.2% increase in mainland stocks. Markets are cautiously optimistic for potential robust measures in the upcoming days from the Chinese government.

Waiting for the “pragmatic and forceful” action from China

China's State Council met on Sunday as lunar new year holidays came to an end. Chinese Premier Li Qiang called for “pragmatic and forceful” action to boost economic confidence and that may have helped mainland stocks to a 1.2% gain but there's plenty of hope baked into recent gains.

Xinhua wrote that Li urged officials to “do more things that are conductive to boosting confidence and expectations, and ensure policymaking and execution are consistent and stable,” according to Xinhua.

No steps were outlined and the PBOC didn't cut rates at Sunday's meeting but hope springs eternal.

If there is a big surprise this week, it would be for something stronger from China.


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.


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