China: Testament of policy effectiveness hitherto

14 September 2023


  • With better-than-expected PMIs, CPIs, and credit data prints, growth rates of major indicators are expected to stabilize in August.
  • Consumption will likely improve in the coming quarters on stimulus such as an increase in tax allowances.
  • Authorities are watching for positive spillover effects from tier 1 cities to the rest of China.
  • External headwinds also appear to be moderating.
  • PBOC is likely to maintain an accommodative monetary policy stance.