‘Stability’ is the watchword as economic priorities respond to a slowdown. The Politburo used the word 18 times in the press release from its 31 July meeting, vowing to stabilise growth, investment, employment finance and, most importantly, market expectations. Efforts to take on structural challenges such as implicit local government debt, the housing bubble and budget indiscipline, are relaxing as the state juggles growth and stability. Local government financing vehicles (LGFVs)—a major source of financial risk in the cross-hairs of deleveraging policy—got a reprieve. Ministry of Finance (MoF) urged local governments to expedite special debt issuance to support new infrastructure, and People’s Bank of China relaxed macro prudential indicators.
August: culling swine, relaxing economy
August: culling swine, relaxing economy
August: culling swine, relaxing economy
‘Stability’ is the watchword as economic priorities respond to a slowdown. The Politburo used the word 18 times in the press release from its 31 July meeting, vowing to stabilise growth, investment, employment finance and, most importantly, market expectations. Efforts to take on structural challenges such as implicit local government debt, the housing bubble and budget indiscipline, are relaxing as the state juggles growth and stability. Local government financing vehicles (LGFVs)—a major source of financial risk in the cross-hairs of deleveraging policy—got a reprieve. Ministry of Finance (MoF) urged local governments to expedite special debt issuance to support new infrastructure, and People’s Bank of China relaxed macro prudential indicators.