The recent uptick in confidence as shown by surging markets could indicate that the Chinese economy is back on the up, according to analysts at Bloomberg, as stimulus policies from Beijing appear to be taking effect.
A boost to liquidity from the central bank and good news coming out of Washington were among some of the reasons for the upbeat atmosphere, said David Qu of Bloomberg Economics in Hong Kong.
The government’s goal of opening more financing channels to the private sector and stimulating infrastructure projects are working, said Qu, as shown by January’s record high loans figures.
Shen Lan, economist at Standard Chartered which conducts a regular survey of smaller Chinese firms, said that the more targeted approach by the government at meeting the financial needs of small and medium-sized companies is having a positive effect.
“We expect continued policy measures to improve monetary policy transmission and lower funding costs for China’s real economy,” she wrote.
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