20080728-Merrill Lynch-China Economics.

The China communist party’s politburo met on 25 July to reexamine its economic
policies. Other than changing the tone of policy stance to emphasize growth, the
meeting provided no details on any specific policy measures and confirmed our
belief that overall policy stance would only be fine-tuned (China's tightening: To
ease, or not to ease: That is the question, 16 July 2008). We expect more active
fiscal polices, slower RMB appreciation, and little change to monetary tightening.