Most of us were run down by China’s sudden swing to commodity-intensive growth in 2016. Are we about to see the reverse in 2017? From the WSJ:
China’s central bank has guided short-term lending rates higher in order to squeeze out borrowers who are using the cheap money to make risky bets and loans.
Last week, some bondholders, including asset managers and issuers of “wealth management products”—off-balance-sheet investment vehicles used by banks and other institutions to get around regulatory limits on lending—were likely squeezed too much. As a result, they began dumping government bonds—which are liquid and thus easy to sell—to raise cash, analysts say.
