China: stimulus policies slow reform agenda
China has once again proved the doubters wrong, at least for the moment. After unexpectedly strong growth at 6.8 per cent year on year in the first nine months of 2017, the economy is on course for its first annual acceleration since 2010.
Global sentiment towards China has shifted radically since early last year, when the Shanghai and Shenzhen stock markets were crashing and the renminbi was tumbling. After its worst year on record, the renminbi has recouped most of its lost ground. Capital flight, which both posed financial risks and was a symbol of flagging confidence in the economy, has slowed to a trickle.
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