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China unveils a Massive Stimulus Package

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China's state run news agency has unveiled a huge $4Trillion Yuan ($586Billion US) economic stimulus package in an effort to loosen credit conditions, cut taxes and jump kick a massive infrastructure spending program. Chinese official hope the plan will compensate for the fall in exports from the rest of the world

The industries that will benefit the most will be steel, cement and railways and when the markets opened Monday those stocks preformed very well with many reaching their stop limits.

The head of the IMF said the huge package will influence the global economy by boosting global demand but what is most important is how quickly the plan will be put in place, about $100 billion Yuan will hit the streets before the end of the year. The plan also will include $120 Billion Yuan in tax cuts and spending to rebuild from several disasters most notably the May 12th earthquake.

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