China needs more than rate cuts to boost economic growth

Key Points

China’s slowing economy needs more than interest rate cuts to boost growth, analysts said.
“We will need a major fiscal policy support to see higher CNY government bond yields,” said Edmund Goh, head of China fixed income at abrdn.
There’s still a 1 trillion yuan shortfall in spending if Beijing is to meet its fiscal target for the year, according to an analysis by CF40, a major Chinese think tank focusing on finance and macroeconomic policy.

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