China President Xi only has 2 objectives: Bail out local govt debt, prop up stock market

This is a very interesting piece in the Wall Street Journal, arguing that the ‘stimulus’ from China has very limited goals:

• According to officials and government advisers close to decision-making, (Xi) wanted to bail out indebted Chinese municipalities on the brink of collapse and revive the stock market without veering too far from his focus on letting the state drive China’s transformation into an industrial and technological powerhouse
• the near-term goal isn’t to massively stimulate demand but to fend off a brewing financial crisis

Here is the link to the Journal (gated):

Behind Xi Jinping’s Pivot on Broad China Stimulus

• A bevy of bad news prompted action from the leader—but not a full U-turn

This article was written by Eamonn Sheridan at www.forexlive.com.