Chinese Economy Yet to Hit Bottom, Hedge With Gold and Bonds

Economist Huang Wentao writes that China's economy is slowing and monetary policy will remain relaxed, but extra liquidity won't save the economy. He says the economy will slow in the coming quarters (with bond market trading opportunities in Q3). The Chinese economy has not hit bottom. Easy money won't save the economy, it will keep it from collapsing:

With the weakening of the real economy, the demand for capital and credit will shrink further. Financial market liquidity will become more relaxed. From the view of the intention of the monetary authorities, as the economy weakens and the CPl falls, loose monetary policy will also return, of course, including the amount and price. In other words, monetary policy will return as the economy's main anchor.

He says Chinese will hedge. Gold and bonds will become the meat and potatoes of investors in search of safe havens.

iFeng: 中国经济将继续下滑货币政策宽松：放水也救不了