China's big stimulus - will it work?

 

Please click the link below to view Shane Oliver's views on China's recent stimulus package.

Key points raised are :

  • A move towards more aggressive fiscal policy stimulus and property support measures should help drive a mild cyclical upswing in China's economy
  • However, it's doubtful it will be enough to reverse longer term structural problems facing China - around excess saving, demographics and growing state control.
  • The Australian economy is less sensitive to China than it used to be, but a stimulus driven cyclical boost to the Chinese economy is still positive for the Australian economy, share market and the Australian dollar.