Positive economic data from China has markets around the world rallying, but the country's rebound will be fleeting."To sustain that next year they're going to have to post in nominal terms a record flow of credit," Autonomous Research's Charlene Chu told Business Insider.
"Credit has turned and that means we don't have to put a floor on growth," Autonomous Research's Charlene Chu told Business Insider over the phone."To sustain that next year they're going to have to post in nominal terms a record flow of credit.
"Just a few months ago the PBOC was still paying lip service to deleveraging, but our data show this as the second consecutive quarter where shadow banking use expanded as a share of total borrowing," the China Beige Book analysts wrote in a recent report."It's also the highest level of shadow bank use since the stimulus-fueled recovery/commodities rally of second quarter 2016.