China has reportedly increased its 2010-2015 budget for railway spending by 500B yuan (81.48B) to 3.3T yuan as the government looks to accelerate construction as part of a bid to prevent GDP growth from slowing too much. In addition, the State Council has approved tax breaks for small firms and a cut in export fees. "It's a small stimulus" that will have a limited impact on demand, says Bank of America's Lu Ting.
Dude, do you know Walter Energy does ABSOLUTELY KNOW business with China? Do you realize the Chinese Communist government is FORCED to spend more on government projects so their private manufacturing and mining does not collapse further to 7% GDP? That is why they are doing it; so their Chinese companies don't go bankrupt.
Do you realize that some 90% of Met Coal needs the Chinese mines and Mongolian mines supply that? The remainder is with Australia.