China's recently announced macroeconomic support measures reflect growing concerns about a weakening economic growth outlook and a rising risk of deflation; however, the measures' scale falls short of what is needed to maintain 5% growth and stop deflation, as authorities continue to resist a large, consumption-oriented fiscal stimulus. Over the past few weeks, Chinese authorities have taken several steps to provide macroeconomic support to the economy amid rebalancing away from real estate sector-focused growth. On Sept. 24, the People's Bank of China announced a larger-than-usual monetary stimulus package. The Chinese central bank also lowered reserve requirements for banks, cut interest rates, lowered mortgage rates and introduced policy measures to support the equity market. Additionally, the government announced its intention to bring forward the issuance of 200 billion yuan (or less than $30 billion) worth of bonds from the 2025 budget to lend greater fiscal support to the economy....
