As Chinese stocks slide for three consecutive weeks of depreciation and the yuan trades near an 8-month low, markets are waiting for officials to deliver on promises to increase stimulus.
Chinese Premier Li Qiang said at a meeting with economists on Thursday that the government will implement a “targeted, comprehensive and well-coordinated” package of measures to stabilize growth and jobs and prevent risks “in time”. However, although Li said that they will take targeted incentive steps “without wasting time”, he did not provide information on the details of the package that investors are eagerly waiting for.
Bruce Pang, Chief Economist of Jones Lang Lasalle Inc., said that the policy-making process is ongoing, but he does not expect much encouragement.