The continuing messages from Chinese authorities are of plans for no large scale stimulus, with overnight reports of:
- Chinese Premier Li Qiang gave his clearest signal yet that Beijing won’t resort to huge stimulus to revive growth amid the worst bout of deflation in decades
Li was speaking to the World Economic Forum.
This should come as no surprise. Chinese authorities have given no indications of large scale stimulus. Early this week the People’s Bank of China even held off on piecemeal stimulus, keeping the MLF rate unchanged yet again.
Chinese Communist Party Chairman Xi, the big boss, is not leading on economic matters, his focus is on nationalism.