Goldman Sachs' Wang Lisheng: China needs to stimulate consumer confidence with 3 conditions - a little inflation, improved corporate profits, and stable household wages

Goldman Sachs China economist Wang Lisheng said that stimulating consumer confidence requires a slight inflation, improvement in corporate profits, and stability in household wages. Currently, the central government is using measures such as trade-in programs, equipment upgrades, and tax cuts to stimulate demand. However, the effectiveness of these stimulus measures is limited by highly indebted provinces and restrictions on the implementation of trade-in policies for durable goods. The scale of fiscal issuance this year has not met expectations, due to low fund utilization rates and low returns on local government projects. The central government aims to promote stable growth in a risk prevention environment