China’s economy in weakening pace – Economists said more stimulus policies, especially fiscal measures such as more tax breaks and infrastructure spending are needed.
China’s economy were in losing streak as regulators and the government officials stepped up efforts to prevent the past few weeks’ dives from inflicting further damage.
The Shanghai Composite is off nearly 22% from its peak just over two weeks ago, including a 3.3% fall on Monday.
The country’s manufacturing purchasing managers’ index slightly fell in June, below expectations.
It had also been 50.2 in May. Any level above 50 reflects growth and the sector last contracted in February.
According to Wallstreet Journal concerning on China’s Economyreport, “Still, many China watchers are sanguine on the economic implications. Historically, the gyrations of China’s stock market have had little impact on the broader economy.
After the last Chinese equity bubble burst in 2007 to 2008, stock prices were in the doldrums for more than five years, but this didn’t stop China from clocking impressive GDP growth rates for much of that period.”
Chinese index moved higher earlier this year, has been grounded in worries that the world’s second largest economy is heading for a harder landing than previously thought.
Australian central bank showed no concern about China economy despite market turmoil, Asked if events there would complicate efforts to rebalance the Australian economy, Stevens told an audience of investors and economists in London:
“On China, we have no particular things to add than what we have already published…The managing down of the asset price/leverage story (in China) is a work in progress and still is.”