Banks and Developers and Local Governments, Oh My!

Despite recent market optimism about China’s economy, credit growth remains under pressure and support for the property sector will be localized and limited. Slowing credit growth will also facilitate additional defaults and credit events within an increasingly fragile financial system. PBOC monetary easing steps will continue and interest rates and yields across the curve will fall this year, which will also facilitate depreciation of China’s currency.

Posted January 20, 2020
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