The Massive Economic Stimulus Announced in China #china #stimulus #chinanews #shorts

Gary Brode of Deep Knowledge Investing and Robb Fahrion of Flying V Group discuss the 5 Things to Know in Investing This Week: The Government is Trying to Control too Much Issue

-Chinese stimulus. More liquidity and a housing bailout. Great for $LVS.

DKI Summary:

China’s economy has been feeling a little deflated lately—literally. But don’t worry, the PBOC has swooped in with a playbook full of moves to pump things back up. To combat the deflationary pressures that have been haunting the country, they’ve cut the one-year loan prime rate by 10 basis points, bringing it down to 3.45%. And with mortgage rates slashed on $5 trillion worth of home loans, it’s clear that despite the CCP scolding their subjects that homes are not for speculation, the government is in full fight mode. Homebuyers are getting a sweet deal with down payments for second homes dropping as low as 30%—a move that’s expected to breathe some life into the property market where many Chinese people save and store their wealth. Plus, the Required Reserve Ratio was lowered by 0.25%, releasing billions of yuan into the banking system.

DKI Takeaway:

The stock market wasn’t left out either. The PBOC pledged 700 billion yuan (about $100 billion) to prop it up, with 500 billion yuan in liquidity for institutions to buy Chinese equities. Big names like Alibaba and JD.com are already feeling the love, with shares up 7% and 6%, respectively. DKI subscribers benefitted from the move as expectations of more money flowing into Macau helped DKI stock pick Las Vegas Sands $LVS rise from $42 to $51 this week.

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This week's written version of the 5 Things with graphs:

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