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Analysts warn more detail needed on new China economic measures

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Analysts gave a cautious welcome to China’s announcement Saturday of fresh fiscal stimulus to revive its ailing economy but warned that more details — and specific headline figures — were needed before its effect could be fully assessed.

At a highly anticipated news conference, Beijing said it would issue special bonds to boost the capital available to banks, as well as allow local governments to borrow more.

The moves add to a series of measures unveiled in recent weeks that have included interest rate cuts and liquidity injections for banks, all aimed at kick-starting China’s dragging economy.

Leaders said recently that the government’s official growth target for this year of about five percent was within reach.

But economists have warned that a robust fiscal stimulus programme is necessary in order to boost domestic spending and achieve the full post-pandemic recovery that has so far eluded policymakers.

‘Devil in details’

“The surprise today is that there is no specific number,” Heron Lim of Moody’s Analytics told AFP after the Saturday press conference, saying it looked like the government was “still working on the minute details of the fiscal stimulus”.

“Unfortunately for China, the devil is in the details. It would be preferable that they do have some headline numbers for people to chew on,” he added.

“In the meantime, investors might be taking a step back until they are absolutely certain of the direction fiscal support is taking.”

Although Saturday’s news conference did not unveil a “bazooka” stimulus package, which investors have been clamouring for, comments by officials on expanding central support for the economy received some praise.

Finance Minister Lan Fo’an said the government was “accelerating the use of additional treasury bonds, and ultra-long-term special treasury bonds are also being issued for use”.

The debt ceiling of local governments would also be increased, in theory empowering them to spend more on infrastructure and protect jobs.

“These policies are in the right direction,” said Pinpoint Asset Management’s Zhang Zhiwei in a note.

“While (Lan) didn’t say explicitly that they will raise fiscal deficit, I think his comments imply that it is possible the government will raise fiscal deficit above three percent for next year,” he wrote.

Such a move would represent a “meaningful shift” in Beijing’s fiscal policy approach, said Zhang, helping to “boost domestic demand and mitigate the deflationary pressure in the economy”.

But the impact of new policies on China’s broader economic outlook will depend on their “size and composition” — again, details that have yet to be announced — he said.

Long-term change ahead?

A major focus of Saturday’s news conference was the government’s efforts to shield local authorities from spiralling debt that could have negative spillover into the economy.

Xing Zhaopeng, senior China strategist at ANZ, said the messaging showed officials were focused on “derisking local governments”.

A new quota for treasury and local bonds, as well as a debt swap programme that could reach 10 trillion yuan ($1.42 trillion) in the coming years, is expected, he said.

Such moves would represent “long-term and structural change”, Xing added, noting that “local governments are the growth drivers in China”.

Other headwinds — including sluggish consumption and high youth unemployment — threaten to dampen economic vitality.

“Fiscal commitment needs to be more robust to offset the drag from households and the private corporate sector,” Gary Ng, senior economist at Natixis, told AFP.

Beijing had not yet decided on the size of its eventual fiscal stimulus package, said Ng, “meaning the impact on growth will depend on whether such announcements are enough to boost confidence.

“More needs to be done regarding implementation and injecting actual new fiscal money.”

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Pascal Dozie, Founder Of Diamond Bank Passes Away At 85

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The founder of the defunct Diamond Bank Plc, Pascal Gabriel Dozie, has died at the age of 85.

According to Business Day, Dozie passed away in the early hours of Tuesday, April 8, 2025.

His death came just a day before his 86th birthday, following a battle with an age-related illness.

Dozie was best known as the founder of Diamond Bank, one of Nigeria’s most innovative financial institutions before its merger with Access Bank.

He served as the bank’s chairman before handing over leadership to his son, Uzoma Dozie.

Dozie is survived by his wife Chinyere Dozie, and five children among other relatives.

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Security forces foil kidnapping in Katsina, one civilian killed

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A kidnapping attempt was foiled in the early hours of April 5, 2025, in Gidan Yan Ali, Kurba Village, Kankara Local Government Area of Katsina State, after security forces engaged armed bandits in a fierce gun battle.

Intelligence sources told Zagazola Makama that the assailants believed to be part of a larger criminal network stormed the village around 11:45 p.m., setting corn stalks ablaze and attempting to abduct women and livestock.

Prompt deployment of security personnel led to a swift response, forcing the bandits to flee into the nearby bush.

During the confrontation, a villager identified as 40-year-old Murtala Dayyabu Sidi was shot and killed by the attackers.

The intervention of security forces ensured the safe rescue of the kidnapped women and the recovery of stolen animals, which were returned to their rightful owners.

Investigations into the attack are ongoing.

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Lagos: Cause of Ijora-Badia explosion revealed

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Lagos State Fire and Rescue Service has revealed the real cause of the explosion that rocked the Ijora-Badia area of Lagos on Sunday afternoon, injuring no fewer than 15 people.

According to a statement by the Director of the Lagos State Fire and Rescue Service, Margaret Adeseye, the explosion occurred around 4:10 p.m. inside a mini shop stocked with 25kg gas cylinders.

The shop, located within a bungalow that housed 15 self-contained rooms and seven other shops, reportedly had five gas cylinders at the time of the incident.

Adeseye attributed the explosion to the mishandling of gas, which caused a leak that was ignited by a nearby flame.

“It was a case of poor handling of gas products, which unfortunately allowed gas to escape and come in contact with a flame. This triggered the explosion,” she confirmed.

The resulting fire, she said, was promptly extinguished by a team of firefighters from the Sari Iganmu Fire Station, with support from the Lagos State Emergency Management Agency, LASEMA, the Lagos Neighbourhood Safety Corps, and LASAMBUS.

While no fatalities were recorded, 15 persons sustained varying degrees of burn injuries.

Adeseye noted that several victims were treated with first aid on-site, while others were taken to nearby hospitals for further medical care.

She also assured residents that the area has since been secured and normalcy restored.

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