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( China ( props ( up the( economy? ( ( ( ( ( ( ( ( ( ( (( ( ( ( ( ( ( ( ( ( The recent Covid outbreak in China has resulting low attendance at work and lack of ( been met ( with( unremitting lockdowns ( ( by(Xi (output( from ( firms. (The stock ( market ( ( has ( (Xinping’s ( government. ( ( This ( has( caused ( slumped ( ( over the( past year (see graph problems in global supply chains due to the
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below).
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CSI300 China stock index (April 2021 to April 2022)
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(Chart source: Bloomberg)
China has launched several rounds of that has caused a crisis of confidence in(the ( economic stimulus measures in April. The sector. were( to encourage ( first (set of measures ( ( ( ( ( ( ( lending by banks (majority owned by the Part of the reason for the government’s ( ( ( ( ( ( ( ( ( ( ( ( ( state) ( for infrastucture ( projects( as (well as ( ( desire to cool ( the ( housing ( market ( ( is because ( measures to prop up the fragile property its citizens cannot afford to buy a property (( ( ( ( than ( one ( child, ( which is(hampering sector. Infrastructure( expenditure is usually for more ( by the Chinese ( (( ( stop ( the population ( ( decline in( used government to ( the( need to ( stimulate ( economic ( ( ( However, the policy ( has backfired( as growth. However, the ( China. need to support the housing market came the housing market has cooled so quickly ( ( ( ( ( ( ( ( ( ( ( from the government’s squeeze on over- that it has caused a sudden drop in prices. ( leveraged ( ( developers ( ( such ( as Evergrande( This( has( taken( away ( consumer( confidence. ( (
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