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.