China’s fiscal stimulus is huge

Monday 17 October 2016

A couple of nice charts from ISI Evercore. On the Chinese housing bubble:

Which is about to deflate. However, readers will know that I am not overly bearish because there will be a large fiscal offset. In fact, there already is:

I still see a pretty serious headwinds for Chinese building commodities as property pulls back but until we get passed next year’s leadership transition you can expect that fiscal pump to be running hot.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.