China will inject $45 billion into its largest banks and insurers, its biggest recapitalization push in decades as Beijing looks to boost the country’s faltering economy. China’s growth target is already its lowest since 1991, and the economic picture is darkened further by a real estate downturn that is straining local government finances and undercutting spending capacity, Goldman Sachs said in a note to clients.
A raft of property-sector measures unveiled last week, however, largely “rehash policies Beijing has already been rolling out piecemeal,” Trivium analysts said. Domestic consumption has also flatlined. Chinese leader Xi Jinping’s “insistence on preserving stability instead of addressing China’s serious structural problems threatens [China’s] ascent,” an Atlantic columnist argued.
