China Money Printer Goes Brrrrrr

The whole world is doing bailouts, but China is the best equipped to force lending by banks. Will China step on the gas or stick to its previously stated desire for relief, but not stimulus?

China Daily: China's foreign exchange reserves fall 1.5% to $3.06 trillion in March
Bloomberg: China’s Bank Lending Surges After PBOC Steps Up Support

China's M2 growth was 2.47 percent in March alone. Even if China settles back into an 8.5 percent growth trend for the rest of the year, barring currency depreciation the FX reserves will fall below 10 percent of M2 sometime in the early autumn. The market doesn't care about this number at this moment, but if it keeps trending lower, at some point it will be noticed.

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