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.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu