Why Is China Rushing to Pivot Its Policy?

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• Last week, the Hong Kong and China stock exchanges bustled back to life amid PBOC's surprise abrupt interest rate cut.

Not only that, PBOC took several 'first-time' actions such as: cutting interest rates and reserve requirement ratio at the same time, or slashing up to -30bps the 1Y base interest rate… which were implemented.

This revived market vibrancy but raised doubts among economists that: 

Is the central bank of the world's second-largest economy becoming out of control with the deflationary situation here? Especially as the week before, 3 major investment banks (Morgan Stanley, GS & Citi) simultaneously downgraded GDP growth forecasts for the country. This suspicion intensified when China's Ministry of Finance hurriedly issued massive ultra-long-term bonds to fund the Central government's 'promise' of fiscal stimulus.

This week's macroeconomics section from Viet Hustler is dedicated to

summarizing China's stimulus packages from last week, via interest rate-monetary policies and fiscal measures. .Through this, Viet Hustler provides analysis on the pressures behind China's above 'emergency' measures - amid the difficulties surrounding this economy. 

Disclaimer: 

Some of the opinions below are purely subjective from the author - and are in no way investment advice! How Did China Rush to Pivot Policy?