China: The New Support Measures Deemed Unacceptable! Is The Worst To Be Feared?

Amidst the real estate crisis, China announced new economic support measures on October 12. However, these announcements, deemed vague and insufficient, left investors wanting more, raising concerns about their effectiveness in reviving the country’s economy.

China: investors worried about support measures! The worst may come

On October 12, China announced a series of economic measures aimed at supporting its struggling economy, mainly affected by a persistent real estate crisis. Finance Minister Lan Fo’an detailed several key initiatives. Among these, increased support for local communities to lighten their debt burden, issuance of treasury bonds to strengthen the capital of public banks, and the use of funds allocated to local authorities to stabilize the real estate market.

Furthermore, specific measures are aimed at supporting students to boost domestic consumption. These announcements come amid a slowing economic context, with growth forecasts for 2024 at only 4.8%, one of the lowest rates in decades.

Measures seriously worrying investors

Despite the scope of the announced measures, investors remain skeptical about their effectiveness. The South China Morning Post reports that many had hoped for more concrete actions and precise figures to reassure the markets. The lack of detailed figures in Lan Fo’an’s statements has reinforced these doubts.

According to economist Xu Tianchen, this uncertainty is because the exact amounts have yet to be approved by the Standing Committee of the National People’s Congress. As a result, investors fear that these measures may not be sufficient to address the structural problems of China’s economy and sustainably revive growth.

In conclusion, although China has announced ambitious economic support measures, their lack of clarity and precision has left investors skeptical. The economic situation remains fragile, and the effectiveness of these initiatives in sustainably reviving growth remains to be proven in the coming months.