Chinese companies’ borrowing costs have never been so low. That’s little consolation to firms cutting debt rather than investing amid a slowing economy.As goes credit growth, so goes the economy.
The amount of local yuan bond sales minus maturities fell 39 percent in August from a year earlier for non-financial firms to 124 billion yuan ($18.6 billion), data compiled by Bloomberg show. Net issuance since March 31 has slowed to 496 billion yuan after a record 810 billion yuan in the first quarter of 2016. Yields on AA+ and AA rated five-year securities dropped to record lows this month.
The decline in bond financing and the lowest fixed-asset investment growth since 1999 suggest central bank monetary easing will have trouble reviving growth that’s forecast to slow through next year.
Portland Rose Parade Cancelled Amid Violent Threats From Anti-Fa: "You've Seen How Much Power We Have... Police Can't Stop Us" - *Authored by Mac Slavo via SHTFplan.com,* *For a bunch of peace loving, tolerance spewing social justice warriors, it sure does appear that the new “prog...