Goldman Sachs advises China to prioritize fiscal measures over interest rate cuts to boost stock market

Economy

1 year ago

News sources:

Credited from: SCMP

Goldman Sachs recommends that China rely more on fiscal measures rather than interest rate cuts to boost stock market performance.
The bank's report notes that historical evidence shows fiscal initiatives have more significantly influenced equity returns compared to monetary easing.
Recent fiscal efforts by China, such as subsidizing consumption and reducing property purchase thresholds, have contributed to a notable stock market rally.
Goldman Sachs raised its MSCI China Index forecast for 2025, reflecting optimism about future government spending to support the economy.
In contrast, UBS Global Wealth Management has lowered its predictions for Chinese stocks, citing concerns about US tariffs and insufficient stimulus.

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