New York, New York (PressExposure) August 15, 2009 -- "Mann International" the Asian-based investment broker apparently believes that China's announcement that it intends to continue its stimulus for its economy may be a signal that it supports actions being taken by Britain and the US.
The firm's analysts were recently proven correct in their suspicions that the Bank of England would extend its program of quantitative easing in order to force extra liquidity into the British economy.
"Mann International" believes that the US Federal Reserve may follow suit at the next meeting of the FOMC (Federal Open Market Committee). Although such an extension by the Fed would likely adversely affect China's holdings of US Treasuries and agency debt, Prime Minister Wen Jiabao said that the Chinese economy faced headwinds especially within its export sector which has suffered acutely as a result of the global economic recession.
China announce a 4trn yuan $586bn) stimulus package last year which aimed to add impetus to infrastructure projects throughout the world's most populous nation.
"Mann International" sources suggested that fears the world's third largest economy would begin to rein in stimulus had mounted after the country's key stock market index and its property markets were beginning to exhibit "bubble" characteristics after china's banks advanced record amounts of credit to small businesses and consumers.