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monetary support, including cuts in the banks’ reserve requirement r
上海夜生活atio. Although the fiscal easing tilt could cause downward pressure on Chinese bond yiel
ds and corporate spreads in the near future, the big picture suggests stabilization and resilience.
上海夜生活女神会所In the second quarter, the Chinese economy grew 6.2 percent compared with 6.4 percent in the first quarter, but tha
t was hardly surprising in view of the global challenges. China’s economic growth is within the target range of 6 pe上海夜生活
rcent to 6.5 percent set by the government. Indeed, a growth rate of 6.2 percent for the whole of 2019 remains ac
hievable even if growth stabilizes around 6 percent to 6.2 percent in the second half.
上海夜生活女神会所In view of the CPC Central Committee meeting, policy authorities are likely to continue m
aking efforts to cap debt growth. While that will support the Chinese economy in the long run, the pot
ential risk in this approach is premature tightening in the short term. To avoid adverse outcomes, fiscal easing is lik上海夜生活
ely in the second half of the year, while monetary easing will be likely to offset riskier scenarios.
Such stances could benefit Chinese stocks, which will also be supported by the anticipated fore上海夜生活女神会所
ign inflows, thanks to the inclusion of Chinese assets in international benchmarks. Despite the rel
上海夜生活atively benign macroeconomic prospects, more optimistic scenarios are con
strained by the lingering uncertainty over the Sino-US trade war and caution in economic sentiment.
American economy is a different story
In the second quarter, the United States’ GDP grew 2.1 percent, which heralds a “slowi上海夜生活女神会所
ng economy”. Last spring, I predicted in China Daily that the US economy would begin to feel the c
上海夜生活ollateral damage more broadly by the summer. And a month ago, I argued that this
damage is spreading, particularly as the White House is initiating new tariff wars against other countries.
That is one reason why the US Federal Reserve－in a widely expected move, but one that critics see as a sign of dim上海夜生活女神会所
inished independence－cut interest rates by 25 basis points to a range of 2 percent to 2.25 percent for the first time in
more than a decade. The Fed also declared a premature end to its balance sheet reduction.