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Stimulus continues to underwhelm

The recent flurry of policy announcements amounts to less than meets the eye. The rate cuts are too small to revive loan demand and the new commitments for direct credit support total just 0.8% of GDP. That’s a fraction of the 6.9% of GDP increase in new lending during the last easing cycle in 2020 and doesn’t change our view that China’s economy will continue to struggle in the coming months.

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