Chinese equities have soared in response to this week's stimulus announcements, but it will take longer for the real economy to respond. While the PBOC has already reduced bank funding costs, rate cuts for firms and consumers may have to wait until after the weeklong National Day holiday. And while fiscal support could be announced before that, it probably won’t be formally signed off until late October. That's probably enough though to secure growth roughly in line with the government's GDP target for this year. And it reduces the risk of a sharper slowdown in 2025.
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