CICC Rebuts Bass on Yuan Depreciation Risk

Barron's: CICC: Why Kyle Bass Is Wrong On China
Foreign investors have been worried about shadow banking. Traditional bank loans aside, Chinese banks also lend through wealth management and trust products. CICC acknowledged that wealth management was growing fast, rising 17% in total value in the fourth-quarter from the September quarter. But only 30% of those went to loans, estimates CICC. “So the total credit risk of those wealth management products is not as big as Mr. Bass described,” wrote Eva Yi and Hong Liang.
This matters for bank liability, but doesn't really rebut the argument about the growth in money and credit.

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