TWO GUT instincts have distinguished the macroeconomic policies of Xi Jinping, China’s ruler since 2012. He has disdained consumer handouts, which he thinks breed laziness. And he has refrained from bold economic stimulus, the kind of fiscal and monetary “bazooka” that China’s previous leaders fired in November 2008 during the global financial crisis. Both of Mr Xi’s convictions have been tested by China’s economic woes over the past year. And this week, shortly before the 75th anniversary of the People’s Republic of China, he appears to have set his qualms aside, permitting China’s most attention-grabbing stimulus since 2008. Chinese stocks posted their best week in 16 years; Hong Kong’s surged at a pace unseen since 1998. Some analysts have even used the b-word.
