Michael Pettis(@michaelxpettis):SCMP: "Policymakers from China’s top economic planner and the nation’s finance ministry have accelerated the roll‑out of supporting measures while ramping up backing for private‑sector entities, after weaker-than-expected economic data highlighted the urgency for further policy stimulus." I suspect that policy measures to boost consumption will barely have any effect over the rest of 2026 as they are still mostly focused on expanding the supply side rather than boosting household income. This suggests to me that much of heavy lifting will be done through even more investment, probably in infrastructure.

2026.08.22 05:27

SCMP: "Policymakers from China’s top economic planner and the nation’s finance ministry have accelerated the roll‑out of supporting measures while ramping up backing for private‑sector entities, after weaker-than-expected economic data highlighted the urgency for further policy stimulus." I suspect that policy measures to boost consumption will barely have any effect over the rest of 2026 as they are still mostly focused on expanding the supply side rather than boosting household income. This suggests to me that much of heavy lifting will be done through even more investment, probably in infrastructure.