Super Bull Market Coming to China Once Minimum 10 Trillion Yuan QE Commences

Dee Woo from Beijing Royal School wrote China's Catastrophic Deleveraging Has Begun back in 2012.

Now he's back with another warning of China' deleveraing. On the plus side, he sees China's stock market almost tripling by 2020 as China's stock market to GDP rises to be on par with India's, but he sees turmoil before then as deleveraging rips through the financial system. It is a very long article, but the essence of it is that China's wealth and credit system (which is the bulk of money supply and what he calls the endogenous money supply) is tied to real estate and as it deleverages, the central bank will have to create more than 10 trillion of exogenous money via quantitative easing. The result will be a steady depreciation of real estate and an explosion in other asset prices such as A-shares. A super bull market.

iFeng: 中国股市楼市正经历一场罕见大裂变

You can imagine the direction the yuan will take as well once this amount of fiat money is created to prevent the implosion of credit money.

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