China to Exert Greater Financial Discipline This Year (BNP Paribas AM)

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

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