A stimulus is good, but China still faces a hard slog

IN LITTLE more than a week, China’s efforts to crank up its economy have achieved something important: President Xi Jinping changed the conversation about global prospects. The US Federal Reserve, usually the principal force driving market sentiment and forecasting, has company.

That is a big shift. For Beijing’s stardom to last, it needs to not only deliver what has been flagged: forceful monetary easing, fiscal expansion, new measures to help homebuyers, capital injections into lenders, and the creation of a market-stabilisation fund. Officials also now need to offer some meaty goals that justify the euphoria.

What does a win look like, and would such a victory be temporary or have staying power?