Jianguang Shen, chief Asia economist at Mizuho Securities Asia Ltd., comments on China’s central bank’s move to cut banks’ reserve requirement ratio by 50 basis points. Shen commented in an email interview today.
On China stabilizing growth:
“For the government to stabilize growth, it would have to rely on more decisive actions to bolster investment, in order to fill the gap from reduced external demand, such as selective relaxation on property tightening and local government financing vehicle loans.”
To contact the reporters on this story: Liza Lin in Shanghai at firstname.lastname@example.org; Zheng Lifei in Beijing at email@example.com
To contact the editor responsible for this story: Paul Panckhurst at firstname.lastname@example.org