What stimulus measures can we expect from China to boost economy? Arnab Das answers

economictimes.indiatimes.com:

«I agree things are not as great as had been hoped. I think gloom and doom is perhaps overdoing it quite a bit. There are clearly headwinds and challenges that most people in markets had not expected,» says Arnab Das, Global Market Strategist — EMEA, Invesco.A lot of gloom and doom over what is clearly a worrying trend on the Chinese economy. How much fear do you think investors need to harbour? How many red flags do you see, without any pun intended, but how much fear should investors factor in right now, looking at these macro trends that are emerging in China?Listen, I agree things are not as great as had been hoped.

I think gloom and doom is perhaps overdoing it quite a bit. There are clearly headwinds and challenges that most people in markets had not expected. I think against that, however, there are signs emerging, including the easing that you mentioned that policymakers in China are beginning to react.

And maybe the reaction has not been as forceful as some would hope. But I expect that it seems likely that there will be more stimulus and more easing to come as the slowdown in the recovery unfolds. I think it is important to say that the recovery in China is very different than the recovery in many other countries that have come out of COVID with a much more intense rebound than has been the case in China.

And I think that is because the Chinese approach to the lockdown itself was very different. Unlike in the West, unlike in many other emerging markets, China lockdown much more intensively, much more repeatedly, and for much longer, and as well did not provide as much fiscal and monetary support going through the lockdowns as took place in the West and many other emerging market countries right. So I think as a