china to provide eonomic stimulus, page-2

http://www.marketwatch.com/news/story/beijing-weighs-58-billion-stimulus/story.aspx?guid=%7BB69A8B6A-6EEF-4C83-B28B-02C142860C54%7D&dist=msr_1

HONG KONG (MarketWatch) -- China is considering a post-Olympics stimulus package of as much as $58 billion, in addition to other monetary easing measures, according to a research report by J.P. Morgan.

The measures could include tax cuts and other moves to shore up the capital markets and support the housing market, according to a research note by the brokers' head of China Research, Frank Gong.

"The top leadership is carefully considering an economic stimulus package of at least 200 billion yuan to 400 billion yuan," Gong wrote Tuesday.

Gong added that slumping inflows of hot money, the shrinking trade surplus and cooling inflation are providing a backdrop conducive to monetary easing, setting the stage for a possible easing of bank's reserve ratio requirements and lower interest rates later this year.