Assessing the Impact of the Chinese Stimulus Package at Home and Abroad: A Damp Squib?
109 Pages Posted: 4 Feb 2015
Date Written: January 25, 2015
The November 2008 Chinese stimulus package seemed to provide almost ideal preconditions for governmental success based upon its size, its concentration on infrastructure, accompanying fiscal expansion at the local level, and supportive expansions in bank lending rates. Our sectoral-level analysis suggests that investor reactions were quite tightly focused, however, with Shanghai market outperformance concentrated primarily in the nation's property, construction, and building materials sectors. Further significant post-stimulus gains accrued to the specifically targeted automobile, steel and textile industries. Meanwhile, Chinese company listings in Hong Kong and New York evinced little sectoral outperformance.
Keywords: Stimulus package; China; Stock market reactions; Shanghai; Hong Kong; New York
JEL Classification: G15; E65
Suggested Citation: Suggested Citation