Stimulus is Over

Back in January I posted: No Stimulus Coming

Chinese officials said as much and the housing market was too ripe for a reversal if the government unleashed a new stimulus. The past three months confirmed as much, albeit after a momentary blast of stimlus. In January, China printed 5 percent of GDP in new debt. Almost immediately after the data came out though, officials downplayed stimulus talk. Home prices stabilized and even started rising again in some cities, leading to a steady drumbeat of articles and comments hitting the same theme: houses are for living in, not speculating on. The easing/lifting of buying restrictions across China aren't signs of a market rebound, only an adjustment. Home prices won't rise. Officials are clearly worried about a repeat of past mistakes.

Caixin: China Shifting Focus From Further Economic Support to Structural Reforms, Analysts Say
China's top decision-makers are shifting focus away from more stimulus and back towards structural reform after positive economic performance in the first three months of 2019, say analysts.

Though the domestic economy was still “under downward pressure,” activity in the first quarter of the year was “better than expected,” said a meeting of the 25-member Politburo chaired by President Xi Jinping, according to the official Xinhua News Agency.

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