Massive China $600 bil stimulus package

China just announced the $600 billion economy stimulus package. This is quite a big surprise to everyone, I think. Not long ago, they are still trying to control the inflation, now it is a really massive stimulus package.

The purpose is to increase the domestic demand, in order to offset the slow down export sector. The aim of the package is quite clear, but the details are not. It is really a massive amount of money. If used at the right place, it is possible to really spur the internal demand.

Spending on infrastructure and rural area has a long lasting effect on the overall demand. But, whether it is too late to prop up the demand remain to be seem.

Of course, this is good for China stock. Especially the infrastructure stock like MIDAS, property stock. Consumer stocks were also get the benefit. Avoid the export oriented stock.