A Stimulus Is Good, But China Still Faces a Hard Slog
Beijing is back in investors’ good books. To justify the euphoria, it needs some meaty goals.
October 3, 2024 at 3:00 AM GMT+8
By
Daniel Moss
Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously, he was executive editor for economics at Bloomberg News.
A long way to go.
Photographer: Qilai Shen/Bloomberg
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In little more than a week, China's efforts to crank up its economy have achieved something important: President Xi Jinping changed the conversation about global prospects. The Federal Reserve, usually the principal force driving market sentiment and forecasting, has company.
That's a big shift. For Beijing's stardom to last, it needs to not only deliver what's been flagged: forceful monetary easing, fiscal expansion, new measures to help homebuyers, capital injections into lenders, and the creation of a market-stabilization fund.
Officials also now need to offer some meaty goals that justify the euphoria. What does a win look like, and would such a victory be temporary