The Strategist

Barclays forecasts more stimulus for Chinese economy

07/12/2023 - 10:14

According to Barclays, China may strengthen economic stimulus in 2023.

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Experts at Barclays believe that China's lending figures are substantially above market forecasts, primarily due to rise in long-term lending to consumers.

The bank's experts say that although China's real estate market is still struggling, certain mid-sized cities have already begun to reduce the initial payments. As a result, additional loans to buyers should be anticipated.

Additionally, they anticipate increased fiscal stimulus and further loosening of monetary policy.

According to Barclays, Beijing will increase its regional bond issuance limit by 500 billion yuan in 2023 by issuing special government bonds worth 1 trillion yuan.