Brace Yourself, China Is Finally Removing Its Stimulus

china yuan

You may have heard it many times before, but now the evidence that Chinese stimulus will be pulled out from under the Chinese economy is overwhelming, according to the independent magazine Caixin.


Signals from all corners of China’s economic playing field are pointing to a gradual unwinding for China’s successful fiscal stimulus project.

Urban fixed-asset investment, construction activity, bank lending and local government bond projects are just a few of the statistical signs of a coming phase-out for the 4 trillion yuan package, which has been pumping the economy with central and local government funds since last year.

“The stimulus has almost concluded,” said the head of one foreign bank’s China-based research department.

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