US financial firms’ interest in China was on its last legs, but a new stimulus package has some investors excited again. The immediate impact of China’s $114 billion package, which includes cutting interest rates and reducing the amount of money banks need to keep in reserve, has been big.The majority of Chinese household wealth is invested in property (70%), which is a problem considering housing prices have fallen as much as 30% in Tier 1 cities.The government spent more than $1 trillion in the wake of the finance crisis and $157 billion in 2012 on infrastructure projects. Does the China’s $114 billion stimulus package really solve the main issue ?
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