October Data Dump Results: Prepare For More Rate and RRR Cuts

Rate cuts have been the answer for the past year and they haven't worked yet. Stepped up reform is a better path and the only one that stands a chance of lifting growth without depreciating the currency.

iFeng: 准备好 中国可能又要降息降准了

Li Keqiang wants to use more reforms to grow the economy: 李克强:全面放宽民资市场准入 分领域减少外资限制. Among several items, he highlighted:
Total relaxation private capital market access, sub-domains gradually reduce, relax, let go of restrictions on foreign investment.

Xinhua: China intensifies measures to stimulate consumption
The government will accelerate reform and innovation to help consumption growth, said a statement after the regular meeting of the State Council, China's cabinet, chaired by Chinese Premier Li Keqiang.

The State Council agreed that authorities will widen market access for private investors and gradually reduce restrictions on foreign capital. The government will work to improve the business and consumption environment through strengthened supervision, better intellectual property rights protection and crackdowns on fake goods.

China will also encourage businesses to adopt new technology and materials to improve the quality of their products, according to the statement.

The cabinet also promised the government will accelerate household registration reform, which will help people relocate to cities, in order to drive home sales and boost consumption of home appliances.

In addition, the government will encourage imports of consumer goods, open more duty-free shops and improve tax refund policies for foreign tourists.
If they're successful, consumption should rise and the trade surplus should fall due to rising imports. The dividends from urbanization are already falling though, as the Chinese government has reported. (See: Urbanization in 2014 and Beyond) Due to the urbanization that has already occurred, the number of people moving into the cities each year has already peaked.

Updated: Minsheng interprets the financial workgroup meeting on November 11: 久违的中央财经领导小组会议释放什么信号
a moderate expansion of demand + supply-side structural reforms

supply side reforms

interest rate and RRR cuts inevitable

rising fiscal deficit inevitable

Xi Jinping talks up stock market and it will hopefully experience a brekaout

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