Expectations lower for China's stimulus package

Note: This section contains information in English only.
Source: Marketwatch

China has announced that its current stimulus plan will not be of the same scale as its CNY 4 trillion (USD 630 billion) package in 2008. Ben Kwong, COO of KGI Asia, highlighted that this time the funding will be more sector-specific with some of the key industries being the automotive and rail sector, appliances as well as the government is concerned with taking into consideration the environmental issues. The COO also added that some investors were anxious that the package might be insignificant and implemented not in due time. Moreover, Barclays' analysts claim the upcoming package might possibly encompass lower interest rates. However, these strategies are not likely to be effective in the long-run and other actions are critical to reboot the economy.

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