China signals further stimulus as manufacturing suffers – Bloomberg

As reported by Bloomberg, the Chinese government is signaling further stimulus plans as  manufacturing data continues to decline, and a continued slowdown in domestic growth as the US-China trade spat continues to take its toll.

Key highlights

China’s current piecemeal approach to fiscal stimulus appears to be having a far more muted effect than Shanghai originally hoped, with broader manufacturing PMIs showing accelerating downside pressure on Chinese manufacturers, and a Politburo meeting on Wednesday, tabled by President Xi Jinping, is promising to take further steps to counter downward pressures as China’s economic situation continues to change.

Chinese manufacturing growth slid to its slowest pace in two years with export gauges continuing to contract further, and China will be looking for ways to further subvert negative tradewar repercussions, as the Chinese government’s recent steps on tax cuts and limited stimulus moves are seen to have limited effect.

“The leadership is paying great attention to the problems, and will be more preemptive and take action in a timely manner,” according to the statement Wednesday. The Politburo reiterated that China will maintain a proactive fiscal policy and a prudent monetary policy, while trying to find solutions to help private businesses. – Bloomberg