Markets Are Giving Up On China’s Recovery Story

While editorializing around reports that top Chinese policymakers are mulling new stimulus measures to bolster a moribund economy, I wrote, of the PBoC, that impaired credit demand may limit monetary policy's effectiveness. With that in mind, note that credit growth data for May, released on Tuesday, was indeed weak, suggesting the MLF cut foreshadowed by a reduction in the seven-day reverse repo rate was in part motivated by yet another month of relatively lackluster credit creation. New yuan