(Analysts) were expecting China to announce a big stimulus package but say they were surprised at the size of it.
“That is much more aggressive than I expected,” said Frank Gong, a Hong Kong based (economist) at J.P. Morgan. “That’s a lot of money to spend.”
Mr. Gong said that after the Asian (financial crisis) in 1997, Beijing undertook a similar, but much smaller, stimulus package, earmarking huge sums to build the country’s (massive) highway and toll road system, which helped keep the economy growing.
Arthur Kroeber, managing director at Dragonomics, a Beijing-based economic research firm, said the government is concerned because people in China have suddenly pulled back on spending as a (precautionary) move because of worries about China suffering with the global economy.
“The government is sending a signal saying: ‘We’re going to spend in a big way,’ ” Mr. Kroeber said late Sunday in a telephone (interview). “This is designed to say to the market that people should not panic.”