The State Of China’s Economy Is Dire. Can Things Improve With Its “Whatever-It-Takes” Stimulus Effort?
Francis Lun, who manages a modest 10-person firm in Hong Kong, has found relief in the stock market after four wretched years.
He has witnessed the city’s lifeblood, the Hang Seng Index, undergo an unparalleled series of declines since the beginning of 2020 as a result of economic hardships and pandemic restrictions, affecting both the semi-autonomous region and mainland China.
However, the benchmark’s fortunes unexpectedly turned around when China’s top authorities unveiled a slew of policies aimed at bolstering the faltering national economy in late September. Since then, the index has increased by more than 18%, marking the largest two-week advance in almost 20 years. According to Lun, the stimulus measures should have been implemented far sooner, but it’s better late than never.
