Why China’s stimulus package could be good for SA mining stocks
Recently, China caught the market’s attention when it launched massive economic stimulus measures. It decreased interest rates by 0.5%, lowered mortgage rates, and injected $142 billion into banks. But the most interesting part is China announced plans to give funds, insurers and securities dealers, access to lending facilities to buy stocks. Following the announcement, Chinese stocks posted the biggest rally since 2008! So, the question is what’s the reason for China’s stimulus package?
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