Meketa Connectives | China’s Latest Stimulus May Not Be Enough

October 2024

In August, Chinese government bond yields hit record lows as authorities tried to cool investor flows into sovereign debt.

The unresponsive Chinese Communist Party’s (CCP) piecemeal policy attempts to stabilize asset prices appeared doomed to fail. But on September 24, China’ policy makers announced a significant stimulus package designed to lift stock prices, improve bank liquidity, and support mortgage holders.