Stimulus Package and Yang Weixiao

Beijing: But while the 2008 stimulus package staved off recession, analysts wonder what benefit the stock rescue package can bring to offset the risk the government is buying stocks at valuations private investors are no longer willing to pay, according to Euro News. I’m quite negative towards the rescue, said Yang Weixiao, analyst at Founder Securities in Beijing. Public statements, media reports and market data reveal that Beijing unleashed 5 trillion yuan in funds – equivalent to more than half of China GDP in 2014 and greater than the 4 trillion yuan it committed in response to the global financial crisis – to calm a savage share sell-off. The problem is, all these measures only change the supply-demand relationship, without changing the fundamentals. If the governments exits the bailout, prices could accelerate their journey back to fundamentals. So there no real support, and the calm could be only temporary. (news.financializer.com). As reported in the news.