But the debt is flowing for infrastructure:

Goldman:

Recent days have seen headlines with more stimulus measures to stabilize growth, including more tax cuts/rebates, policy bank support, railway construction bondissuance, and frontloaded 2023 budget for transfer payments. Taking stock of these fiscal stimulus measures, we estimate the total size of additional fiscal stimulus would be around RMB2tn (1.6% of GDP). But these recent policy moves are roughly in line with our fiscal outlook, as we expect our augmented fiscal deficit measure to widen by 3pp of GDP to 14.2% this year.

Chinese unrecovery ahead.

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Houses and Holes

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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