A story that deserved to get more attention than it did this week was the news that China is planning on spending less on rail than it had spend last year.Specifically, it will spend about $115 billion, down around 9%.
There’s a few takeaways, but the big one is that the peak in Chinese infrastructure stimulus is in the past.
Granted, the country still has tons to build, no doubt, but there are limits to that.
When you see the slumping oil and copper markets this week, this story makes a lot of sense.
Beyond that, Chinese rail is gets a lot of hype, but also criticism for mal-investment. Is it possible Beijing is realising that too?