The recent Politburo meeting in China appears to have been nothing more than a hollow signal for the markets. Over the past month, Beijing has continuously repeated its commitment to implement a substantial stimulus package. Yet, once again, the markets received only another vague statement without any substantial policies to support the rhetoric. In fact, according to Lingling Wei from the WSJ, the Politburo statement was hilariously explicit about how the Politburo intends to keep talking for now: “Between printing money and issuing coupons, we chose more rhetoric.”

On a positive note, we can at least derive that Politburo is aware that it is the housing sector that ultimately causes the current reluctance from consumers:

Chart 1: Chinese Loans growth