From the the South China Morning Post, in brief:
- Beijing’s mini-stimulus policy has revived the mainland economy, but observers say it may only cure the near-term pains
They cite: Bank of America Merrill Lynch:
- “We believe the rebound was mainly driven by the government’s stimulus measures focusing on increasing spending in infrastructure [especially railways] and social housing”
And Credit Suisse:
- “China’s problem in its core is private investment has disappeared”
- “So the solution has to be re-engaging private investment, instead of the government taking over the investment job”
- “I am, however, not naive about the influence of vested interest groups. Eventually, maybe half the initiatives pledged at the [Communist Party's] third plenary session could be executed, but that would still make things look different five years later”
