Fidelity International's George Efstathopoulos: Unpacking the recent Chinese stimulus

Designed to have a 'positive wealth effect'

Prior to the most recent stimulus announcement, monetary easing has been the go-to policy tool in China this year.

However, given the deflationary environment in China and the deeply negative sentiment caused by the property sector's implosion, monetary policy alone has only been able to help at the margin. Friday Briefing: China's mammoth stimulus has given equities a boost, but it doesn't solve the core issues Exports have been the key engine of China's economic growth this year. But with US growth moderating and elections around the corner, the outlook for exports looks less certain. These dynamics led Chinese policymakers to announce a range of measures in September designed to boost sentim...