China is actually doing ok so far, it seems to be all back firing on the US and probably why they are doing exemptions this week. China at the ready to ease when required to combat Trump
"It's simply too early for Beijing to go all-in," said Larry Hu, chief China economist at Macquarie.
"It's much easier for Trump to walk back his tariff threat than it is for Beijing to walk back its stimulus announcement. Moreover, policymakers could announce new stimulus at any time."
China has already brought forward the implementation of its 2025stimulus plansand that will continue, Hu said.
In January-March, government spending rose 4.2% from a year earlier, while revenue fell 1.1%, resulting in a fiscal deficit of 1.26 trillion yuan ($173 billion), the highest first-quarter reading on record, government data showed.
Furthermore, local governments issued nearly 1 trillion yuan in new special bonds over that period, up nearly 60% from a year earlier. The People's Bank of China has also escalated lending to state-backed investors to support the stock market.
Growth of China's total social financing, a broad measure of credit and liquidity, hit a 10-month high of 8.4% in March, central bank data showed.
New loans to non-bank institutions hit 284.4 billion yuan in February - the second-highest reading since a peak of 886 billion yuan in July 2015, China's last major stock market crisis. Non-bank loans fell in March but analysts expect April to be strong.
Policy advisers say more can be done if needed.
WDS Price at posting:
$20.74 Sentiment: None Disclosure: Not Held
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