Hong Kong (AsiaNews) - The Hong Kong Stock Exchange fell by 1.94%, Chinese company shares by 2.3, Shanghai to 0.1 (the lowest level in two weeks), after 'Xinhua's announcement that Beijing will not put in place any stimulus package for the economy.
Until yesterday there were contradictory reports on the possibility of another stimulus, similar to the package of 4 trillion Yuan injected as loans during the 2008-2009 crisis. The rumours were fuelled by the general statements of Prime Minister Wen Jiabao, who promised "greater growth" compared to April's negative trend.
But last night, Xinhua and the People's Daily today, excluded any aggressive stimulus. Some researchers and economists linked to the government have warned Beijing of a surplus of investment that would reduce the efficiency of economic growth and overcapacity in some industries would.
In fact, the stimulus package launched in 2008 produced a large bubble in the housing sector and left many local governments in an abyss of debt for having launched the construction of unnecessary facilities. In addition, the ease of borrowing increased inflation, reducing the the already low purchasing power of Chinese wages.
The Chinese economy is already occluded from overproduction, given the reduction in exports, caused by the crisis in the euro zone and the United States. International institutions have long been calling for China to change its development model, focused on exports, in favour of an increase in domestic demand.