- The Agricultural Bank of China has made a huge loan to Shanghai, equivalent to 12.5 per cent of Shanghai’s GDP last year
- The loan will help fund the government-controlled joint venture that is building China’s second Disneyland
- Will also pay for improvements needed to implement the city’s free-trade zone
Senior government officials insist the loan does not mean Beijing will launch a nationwide economic stimulus package – as it did in 2008 – to ensure the world’s second-biggest economy grows 7.5 per cent this year, the target agreed by leaders, including President Xi Jinping and Premier Li Keqiang earlier this year.
But the sources said Beijing did not rule out so-called “unofficial economic stimulus” to help key cities and provinces like Shanghai boost local economic growth.
This is a huge loan, any way you spin this, it is a big stimulus.
A positive input for AUD