Chanticleer
China fails to ‘feed the monster’ with stimulus fizzer
China’s initial failure to provide the sort of fiscal stimulus required to prop up its economy means investors need to rethink their emotional bets.
In hindsight, the press conference held on Tuesday by China’s National Development and Reform Commission was almost guaranteed to disappoint.
For the best part of two weeks, since China announced a round of monetary policy easing in late September, Chinese equities have been on fire, with the Hang Seng China Enterprises Index surging 30 per cent as investors bet the Chinese government had finally recognised it needed to pull out all the stops to support the economy.
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