PBOC May Opt For Smaller Stimulus Instead Of “Big Bang” – Analysts

There has been increasing chatter in recent weeks about the possibility of China unleashing a fresh round of stimulus, but those who are hoping for an ‘all-guns-blazing’ announcement could be left disappointed, analysts say.

“I think the market is pricing in a ‘big bang’ type of announcement and if that doesn’t come out – which it looks like will be the case – then investors will be disappointed,” said Daniel Hynes, commodities strategist at Hynes Commodities.

Recent bearish Chinese data, from manufacturing activity to trade figures, have heightened speculation that Beijing will move to prop up its economy. Following a State Council weekly meeting last week, Premier Li Keqiang said the government should roll out measures as soon as possible to stabilize growth and boost domestic demand, according to state news agency Xinhua.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.