Beijing’s latest policy announcements show that it is no longer content with a managed slowdown. They are now committed to more energetic policy support for the economy.
Given the slowdown's entrenched roots, partly due to Beijing’s prior reluctance, we do not think that the current package alone will turn things around.
But with Beijing taking the cyclical slump more seriously, further support measures are likely, which, cumulatively, may be sufficient to stabilize short-term economic conditions.
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