Sumary of China’s economy weakens in August on Delta outbreak, wary consumers:
- Construction investment contracted 3.2 per cent in the eight months of the year, a reflection of the government’s steady tightening of property restrictions as part of a campaign against financial risk.
- Authorities will stick to their approach of “short-term pains in order to seek long-term gains,” and will likely maintain property curbs, he said.
- China’s government is refraining from broad stimulus to support the economy, with policy makers ramping up targeted programmes for smaller businesses instead, and pledging fiscal support through the use of local government bonds.
- The People’s Bank of China (PBOC) maintained its measured policy approach on Wednesday by rolling over its medium-term loans coming due rather than injecting more liquidity.
- Many economists expect the PBOC will cut the reserve requirement ratio for banks again in coming months following a surprise reduction in July.
- “Policy should ease on the margin through faster government bond issuance and more loan quota, but it’s still too early for them to loosen the controls on property and local government debt.