Will Continuous Monetary Easing Turn Chinese Economy around? SMM Interviews

SHANGHAI, May 14 (SMM) – Analysts expect the Chinese government to roll out more growth-fanning measures following recent poor economic releases. Will the continuous monetary easing help turn Chinese economy around?

“Liquidity injection alone may give little boost to the real economy as most of these funds have entered stock markets, for the moment at least,” analyst of Wanda Futures told SMM.

Analyst from Western Futures agreed, and noted that restructuring will remain the key to bolstering the economy, and the continuous easing policies may have limited impact on economic growth.

“We have seen huge capital flowing into securities markets for now, but slower rises in stock prices expected may finally help guide funds into the real economy, or industrials, but we believe the effect may not be that strong,” analyst with Meierya Futures said.

However, analyst with Minmetals Futures has a different saying. “The depreciation pressure on Chinese yuan will ease and exports are set for a recovery with foreign economies on the mend, and that plus China’s pro-growth measures, may herald a better picture for Chinese economy in Q2 and Q3,” the analyst said in the latest SMM interview.
 
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