China stimulus package ignites widespread positivity

Groups react positively to last week's China stimulus package, believing the nation is now well positioned to lead Asia out of the downturn

Fund groups have reacted positively to last week's China stimulus package and believe the nation will lead Asia out of the downturn. Last week the Chinese government announced a £370bn stimulus package to go into housing, infrastructure and post-earthquake reconstruction over two years. Simultaneously announced by China were significant cuts in business tax and an easing of bank lending regulations, along with a promise further monetary slackening would follow. Premier Wen Jiabao reportedly said: "The investment expansion should be done swiftly and forcefully." This followed two rat...