Goldman Sachs Take On Politburo Meeting

The US Bank views the July Politburo meeting outcome as slightly more dovish than expected, see below for more details.

• "We view the July Politburo meeting statement as slightly more dovish than expected, mainly reflected in the neutral statement of the current economic situation, the deletion of "housing is for living in, not for speculation" and the acknowledgment of new developments in the property market. The mention of "a basket of local government debt resolution plan" is also new. As the July Politburo meeting would set the tone for policy stance in 2H of this year, we think the new assessment of the economic situation, property market and local government debt would imply further policy easing measures in the next few months. Specific easing measures would still need to be announced by other government institutions such as Ministry of Finance, NDRC and PBOC. We continue to expect a combination of monetary, fiscal, property and consumption support measures to be rolled out in the next few months."