Liquidity injections and zero interest rate policies disguise risk and may give a false sense of security.
This risk could not be more evident today. Not only have we seen large downgrades to consensus growth estimates and central banks’ expectations of GDP and inflation, leading indicators also point to a much weaker economy ahead.
An influential report shows the country’s private sector is shrinking for the first time in two decades as calls for accelerating reform gather pace
https://www.wsj.com/articles/chinese-stocks-pledged-to-lenders-raise-doom-loop-fears-1540356191 https://www.cnbc.com/2018/10/24/dollar-yuan-china-currency-will-weaken-in-next-6-months-says-goldman.html