Imposition of financial discipline to reduce moral hazard is more of a risk to Chinese economic growth in 2021 than a tightening of monetary policy. As Beijing kicks the implicit government guarantee habit and reduces liquidity available to state-owned companies, Chinese GDP growth is likely to fall short of consensus forecasts.
Focusing on the possibility of tighter monetary policy in China this year is beside the point for the following reasons: READ MORE
Similar Posts:
- Secret to Enduring Stagflation Sends Traders to Emerging Markets (Bloomberg)
- BNP Paribas’ Chi Lo: Patient Investors Should Build Up China Exposure Now (CMN)
- The Biggest Problem China Faces Isn’t Real Estate (The Epoch Times via Zero Hedge)
- China: Navigating the Regulatory Landscape (UBS AM)
- Key Apple, Tesla Suppliers Halt Production Amid China Power Crunch (Nikkei Asia)
- Evergrande Explained (KraneShares)
- China’s Effective Tax Rate is Still Much Lower Than the US (The Asset)
- 2021 Midyear Asia Economic Outlook: Divergent Recoveries (PineBridge Investments)
- China Definitively Reins In Jack Ma’s Ant Fintech Empire – Agreement Reached On “Restructuring” (ZeroHedge)
- Billion-dollar Tech Startups Hold Promise for China’s Economy (Nikkei Asian Review)
- China’s Tech Revolution: Unprecedented Scale, Mixed Results (NinetyOne)
- Moody’s Downgrades Macao to Aa3 with Negative Outlook (Moody’s)
- ING IM’s Ruijer: China and the Fed are the Biggest Risks to Frontier Markets (Citywire)
- How China has Dragged Down Investor Returns Over the Past Decade (Forbes India)
- Are Big Tech Stocks Following in the Footsteps of Their Chinese Counterparts? Part Deux (The Felder Report)
