China's Policy Support: A Temporary Measure, Not Stimulus, Says SocGen Economist

China's recent policy support measures, including the issuance of 1 trillion yuan in government debt, should be seen as stop-gap measures rather than economic stimulus, according to Societe Generale's Asia chief economist. The measures are aimed at fixing the system and resolving the debt problem, particularly in the real estate sector, which has been hit hard by the housing correction. While there are signs of expansion in the services and manufacturing sectors, there is a divergence between official and private surveys, indicating the fragility of the Chinese economy and the need for further stabilization efforts.