In this episode of 22 George Street, we evaluate China’s newly announced stimulus plan aimed at revitalizing its struggling economy. With the Chinese government optimistic about a rebound in the stock and real estate markets, many investors are eager to capitalize on potential economic growth. But what does the financial theory say about the effectiveness of such stimulus measures? Join us as we explore the implications of an oversized financial sector, the historical context of previous stimulus efforts, and the barriers to innovation and investment in China today. Tune in to discover whether this stimulus could truly pave the way for recovery or if it will lead to further challenges.