China Economy

Chinese credit tightening to smash its stocks?

David Llewellyn-Smith
Thursday, 22 April 2021
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Just how bad is Chinese counter-party risk? Really, really bad can be the only possible answer.

After just a few weeks of credit stress, Chinese authorities have folded like a deck of cards on China Huarong Asset Management:

  • The PBOC is considering a $15bn bailout.
  • The PBOC unit will effectively become a new bad bank to manage the dud assets of the former badder bank.
Mixed Signals on Huarong's fate whipsaw bonds

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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.