ft.com - 11/9/2008
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China announced on Sunday a “massive infrastructure spending programme” as part of a new fiscal stimulus plan aimed at boosting the country’s rapidly slowing economy. The State Council, China’s cabinet, authorised Rmb4,000bn ($586bn) of investment on infrastructure and social welfare over the ...
online.wsj.com - 11/9/2008
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online.wsj.com —
SHANGHAI China's government announced a two-year stimulus exceeding
a half-trillion dollars to offset the impact of slowing...
global growth and unlock the spending power of its vast population. Premier Wen Jiabao's cabinet set plans for 4 trillion ...
(more)
China Announces $586 Billion Stimulus Package
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China Acts
Econbrowser —
... decades.
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What this suggests is the Chinese leadership sees a somewhat more pronounced slowdown in growth than the IMF. The IMF's revised outlook released Thursday indicates a 0.1 ppt reduction in 2008 y/y growth, and 0.8 ppt reduction for 2009 y/y growth. These are revisions relative to those released less than a month ago. Current IMF projections (as of Thursday) are for 2008 q4/q4 of 9 ppt, and 2009 q4/q4 of 8.3 ppt.
See also: FT, NYT, Reuters.
Technorati Tags: China, stimulus plan, ...
The slow news from China
FT Alphaville —
Now there we are, all webbed-up and work all hours; the globe’s financial markets digest news almost instantaneously - wherever events might take place, right? Not in the case of China, it seems. European equity markets were set alight on Monday by news that China is planning to spend $586bn on infrastructure and social welfare over the next two years. This apparent decision to adopt an “active” fiscal policy sparked a 6 per cent jump in the Hang Seng, while Chinese shares in Hong Kong jumped more than 10 per cent. In London, the mining-heavy FTSE 100 added more than 3 per ...
Opening Bell: 11.10.08
Dealbreaker —
China Authorizes Massive Bailout (FT)
The Chinese have authorized a bailout package of unprecedented size: $586B. In a statement regarding the bold move, "The government said the spending plan reflected a decision to adopt an "active" fiscal policy to deal with the global financial crisis, while monetary policy would be "moderately active".
The problem inherent in China's "throw money at it until it goes away" plan is that the core of China's revenue comes from manufacturing, and unfortunately, people just aren't buying right now.
"Two ...
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