www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

US EUROPE AFRICA ASIA 中文
Business / View

A stimulus by another name could be just as good

By Ed Zhang (China Daily) Updated: 2014-09-22 07:07

There will be no more massive financial stimulus for the Chinese economy, as Premier Li Keqiang has repeatedly said. But there will be many a mini-stimulus of different kinds.

A stimulus by another name could be just as good
Public freely discusses FTZ with Li

 
A stimulus by another name could be just as good
Negative list to get shorter, premier says 
In all likelihood, from now to the beginning of 2015, people will continue to see China showcase the weapons in its policy arsenal which it will deploy to stimulate GDP growth.

One example is the announcement on Sept 16 from the People's Bank of China, the Chinese central bank, about its use of SLF (standing lending facility), whose main use is to provide more liquidity to the market.

The central bank said it is to extend a 500-billion-yuan ($81 billion) three-month SLF to the five largest national banks. The move is seen as a new kind of stimulus that is tantamount to lowering all banks' RRR (required reserve ratio) by 0.5 percentage point.

An RRR slash may appear too strong a stimulant dose. It cannot always be readjusted, and it would look bad to go back to the old RRR in just three months. The SLF is, in contrast, much more flexible an instrument in the management of money supply.

But one thing cannot be mistaken: The SLF is also a stimulus. And China is trying all possible flexible ways to stimulate growth.

The PBOC announcement is evidence of analysts' recent forecasts that some disguised QE (quantitative easing, the way the US Federal Reserve provides liquidity to the market) may be or would be at work in China, to inject new dynamics into the economy after industrial performance in August (below 7 percent year-on-year) fell to a six-year low.

With such figures, investors were increasingly edgy, fearing a further slowdown in the last few months of the year. As a reaction to the industry's poor show, the stock markets in Hong Kong, Shanghai and Shenzhen have been on the decline.

Investors and the public usually have little patience to wait for the so-called reform dividend to percolate from the policies and practices that the leadership is only beginning to implement at the central level. It would take time, perhaps too much time, for them to yield the expected results at the city or corporate level.

Economic effect aside, the PBOC announcement shows clearly that officials in Beijing do care about stock market fluctuations. They are duty-bound to try to prevent the picture from growing cloudier in the fourth quarter, in a season of festivals and a series of high-level conferences to plan for the economic direction next year.

In fact, it is dangerous, and unnecessary, to treat a financial policy like a political commitment, such as whether to provide a stimulus. There is a risk of it being overdone.

Back in 2008-09, shortly after the Wall Street meltdown, the Chinese government made it a political task to dish out a 4-trillion-yuan (over $600 billion) worth of stimulus to keep up economic growth. It turned out that much of the amount, if not even more, was grabbed by State-owned companies, only for the economic balance to deteriorate.

Having obviously learned the lesson, the Chinese government has, since the beginning of 2014, repeatedly pledged that no more stimulus of the 2008-09 size is to be expected even though the economy is facing difficulties.

It is a good pledge, especially when there is a need to cut off credit supply to industrial capacity and building projects that are useless and wasteful.

But a strict no-stimulus shouldn't be made a political task either because there are cities with unique plans, companies with good projects, and individuals ready for business ventures. Their part of the economy deserves to be treated differently from the part that is plagued by overcapacity and pollution.

The author is editor-at-large of China Daily.

 

Hot Topics

Editor's Picks
...
...
主站蜘蛛池模板: 又黄又爽又刺激的视频 | 精品国产三级a∨在线 | 一级做人爱a视频正版免费 一级做性色a爱片久久片 | 香蕉久久久久 | 久99久精品视频免费观看v | 日本三级在线观看中文字 | 亚洲成人xxx| 欧美成人精品大片免费流量 | 日韩欧国产精品一区综合无码 | 欧美的高清视频在线观看 | 亚洲国产精品成人精品软件 | 看a网站 | 亚洲国内精品自在线影视 | 久草视频播放 | 手机看片福利在线 | 成人性免费视频 | 免费网站看v片在线香蕉 | 人成精品视频三区二区一区 | 涩涩国产精品福利在线观看 | 97视频在线观看免费 | 亚洲一区二区三区免费在线观看 | 精品欧美一区二区在线观看欧美熟 | 久久福利资源站免费观看i 久久高清精品 | 国产一有一级毛片视频 | 国产精品国产三级国产专区5o | 麻豆传媒一区 | 日韩美女一级毛片a | 香蕉久久网站 | 国产成人综合精品一区 | 久久久久亚洲日日精品 | 爱啪网亚洲第一福利网站 | 欧美日韩国产人成在线观看 | 92午夜国产福利视频1000 | 亚洲一级毛片欧美一级说乱 | 中文字幕一级片 | 国产成人3p视频免费观看 | 国产精品久久不卡日韩美女 | 毛片免费视频 | 欧美在线三级 | 欧美在线成人午夜网站 | 欧美精品不卡 |