Beijing boost
Moves by China to stimulate the world’s second-largest economy are already affecting the ASX — and will have profound implications for Australia beyond that.
While much of Australia’s political and economic commentariat was caught up in a fierce debate over potential changes to negative gearing tax concessions last week, something much bigger was unfolding in China.
Authorities in Australia’s largest trading partner unveiled a series of measures to support the world’s second-largest economy — described by analysts at Barclays as “larger than expected.”
It’s already had an impact on the ASX, propelling the market to a fresh record peak on Monday and lifting big mining stocks such as BHP, Fortescue and Rio Tinto to multi-month highs.
But as Treasurer Jim Chalmers noted on Monday morning, himself fresh off his return from a trip to Beijing last week, the measures will also have a significant impact on our own economy and budget bottom line.
