China has poured billions into the economy. But it hasn’t shown up yet

China has poured billions into the economy. But it hasn’t shown up yet
China has poured billions into the economy. But it hasn’t shown up yet
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China’s manufacturing activity contracted for a fourth straight month in January as the domestic economy continued to deteriorate and demand growth remained weak. The manufacturing purchasing managers’ index (PMI) came in at 49.2, below expectations and indicating a contraction in the sector, Bloomberg reported.

Slightly better results are reported by the non-manufacturing services sector, where the index reached the level of 50.7, while the services sector grew for the first time since October.

“I don’t see any turning point,” Galvin Chia of NatWest Markets in Singapore told Bloomberg, adding that any positive surprises are too small to correct the overall not entirely comforting picture.

Like many other analysts, he questioned the effectiveness of the economic measures of the Chinese administration, which has directed billions of dollars to support the economy – most recently the Chinese central bank helped by reducing the required bank reserves. The rules for “shorting” on the stock market were also tightened, and developers received a boost in the form of more favorable loans.

In addition to the mood of the managers themselves, the poor mood in China is also evidenced by the development on the stock exchange there. Over six trillion dollars flowed out of it within a few months.

In March, China will have a meeting of parliamentarians, during which the innermost leadership of the Communist Party will announce how much the economy should grow. Economists expect to set a fairly high number – around five percent – ​​and already doubt that it can be achieved.

The article is in Czech

Tags: China poured billions economy hasnt shown

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