Wen Hints China Will Keep its Easy-Money Policy

Posted by: Bruce Einhorn on September 2, 2009

The Shanghai stock market took a beating in August, tumbling 25%, amid investor worries the Chinese government is readying to cut back on lending by the state-owned banks. Yesterday Chinese Premier Wen Jiabao seemed to give assurances that there’s no reason to be concerned Beijing will be taking away the punch bowl from China’s easy-money party. According to this story from the official Xinhua news agency, “China would not change the orientation of its stimulating economic policy” and “would continue to pursue proactive fiscal and moderately easy monetary policies.” The agency went on to quote Wen directly saying “we will not change the orientation of our policy.” Will this reassure jittery investors in China? No doubt they’re still suspicious. Still, while markets in the rest of Asia are down today, following a bad day for the Dow, Nasdaq and S&P 500, Shanghai was up 0.5% in morning trading.

Reader Comments

Chinaman

September 2, 2009 10:48 PM

I won't ever believe a word Wen says!
He is a great actor, he should actaully get an oscar!
The government is lurling investors into market while the state-controled banks are tightening loans already. That's why the stock is tumbling.
By the way, never listen to Xinhua News agency, there is not a single private owned-independent-free minded-unbiased news agency/publisher in P.R.China.

C. H. Ng

September 3, 2009 10:23 PM

From a Chineseman to Chinaman:
I am very surprised to find someone who claimed himself a "Chinaman" badmouthing your own country's premier. How I wish to happily exchange someone like him as my country's premier. I am sure he would have made my country more prosperous and dynamic with his capability.

C. H. Ng

September 6, 2009 9:48 PM

From a "Chineseman" to a "Chinaman" :-

It's very surprising to me that a mainlander can badmouthing his country's premier where to me, he (the premier) is doing a great job / service to the country as far as I am concerned.
In fact I wouldn't mind to "exchange" such a capable man as our country's premier if I can get to make a wish.

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Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

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