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If you needed a more elegant demonstration that everybody was waiting for the Chinese National Congress before seeing China slow then you need look no further than the bond market yesterday, via Reuters:
Top policymakers at China’sCommunist Party Congress last week said that efforts to contain excessive risk-taking in the financial system will continue next year, with hints of more regulations in areas such as interbank borrowing and wealth management products.
Beijing’s “de-risking” campaign has pushed China’s money market and short term rates gradually higher so far this year, but also triggered periodic fears of liquidity squeezes and spikes in financing costs.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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