HSBC says China has enough ammo to keep its economy up

HSBC are far from worried about the Chinese economy

HSBC say that the Chinese economy will pick up in H2 2015 on the back of monetary and fiscal policies put in place and that the Chinese are far from out of ammunition on both fronts.

Chief China economist Qu Hongbin says in a note taken up by China Daily that the economy will show a modest recovery in the second half of the year and maintains their full year growth forecast at 7.1%

He adds that there is ample room for the PBOC to embark on further easing measures and that fiscal policy also has room to be more supportive.

He expects the PBOC to cut interest rates by 25bps and cut 200bps from the RRR

Adam said yesterday that he expects the PBOC to act sooner rather than later but I'm inclined to think that if they are changing tack on dealing with the current panic, they might let things settle down a bit first