China launched ¥4 trillion stealth stimulus in May

So says Lang Xianping on his Weibo account. He says the central government launched the stealth stimulus in May, which would help make sense of the June uptick in housing and PMI. Local governments have been furiously implementing the stimulus: Changsha (Hunan) has an ¥829 billion stimulus spread across 195 projects. Xian is planning 9 more subway lines, in addition to the 6 already in operation or planned, which will combine for a total 15 lines and 550 kilometers of rail. Guizhou suddenly announced ¥3 trillion spread over 2300 tourism related projects.

Lang Xingping closes by saying this is like giving a terminally ill patient a shot in the arm, after a period of excitement, [the economy] will sink into an even deeper crisis and the bill for these chaotic investments will be paid by the common people.

See China Cities Roll Out Stimulus as Changsha Targets $130 Billion for English coverage.


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