Launch VideoBig Picture: China’s Fiscal Expansion Unlikely to Spur Equities
China’s goal of doubling per capita income by 2020 — which was discussed at the 18th Communist Party Congress that concluded yesterday — is likely to help place the country on the right track to sustainable growth. Still, the reform agenda will take years to implement, and change is not guaranteed. In the near term, a fiscal-led turnaround in fourth-quarter GDP growth is unlikely to boost the country’s equity markets, with China’s aggregate demand still well below its output capacity.
