China Securities Journal: Reserve-ratio or interest-rate cut may have a limited effect via ForexLive

China Securities Journal (via MNI) cites State Council's Development Research Center Vice Director Liu Shijin:

• Says a reserve-ratio or interest-rate cut may have a limited effect only on the economy because the money released may go to the stock market instead as a result of industrial overcapacity
• Fiscal policy is more effective and government investment in infrastructure and other projects should be increased
• Moderate stimulus is necessary to prevent a rapid economic slide but won't help long-term structural problems

posted via ForexLive