Long and interesting article on Chinese local gov't debt issues and some of the growing issues that are not really being covered by the media in any given way. The only headlines we ever seem to get on China are "trade war" and "stimulus".
Research is coming directly from Chinese banks, which would if anything, be less likely to discuss "bad news" or challenges in the Chinese econ. So I tend to trust the "bad" news from Chinese sources at least somewhat.
Despite these growing problems, China's stock markets have been on a tear this year. Chinese markets have seen enormous inflows during q1 2019, some of which is likely the result of having their domestic indexes for both equities and bonds now included in MSCI indexes, which has attracted a significant flow from passive funds.
Some data has ticked up in China (PMI data) in the last month, so there are some positive signs for the economy in the near term and possibly longer term, although the question is whether those signs really matter that much in the bigger picture amidst the bigger structural debt issues.
Submitted April 03, 2019 at 01:32PM by cbus20122 https://ift.tt/2UguAu6
