Ambrose Evans-Pritchard is getting over-excited about another Chinese back-flip today:
China’s authorities are increasingly worried by stress in the country’s financial system and the sudden slowdown in economic growth, fearing that it may now be too dangerous to press ahead with their draconian crackdown on shadow banking.
The People’s Bank (PBOC) began signalling late last week that it would soften its assault on the credit markets, shifting to pro-growth and efforts to prevent a liquidity shock before November’s Communist Party Congress.
