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China Deploys 350 Billion Yuan In ‘Not QE’ To Halt Property Slump
Don't call it "QE." The Party doesn't like that.
In a testament to ongoing concerns about the sustainability of what Chinese officials are still euphemistically calling a "recovery," the PBoC doled out tens of billions of dollars in cheap loans to policy banks last month, data out this week showed.
Specifically, some CNY350 billion in cheap funding was mainlined into the Mainland system via the PBoC's PSL facility in December.
It was the largest increase (indeed, the data suggests it was th
Pumping money into infrastructure and affordable housing don’t sound like an effective way to support the private property sector, consumer demand, or financially ailing local governments, and banks are likely to slow-walk making doubtful those loans to the extent they can. But the RMBs are getting serious and the central government is starting to commit its own credit, so the gravity of the situation is, it seems, not lost on Xi’s advisers.