Can QE float the Chinese Titanic?

Thursday, 14 March 2024

BofA with the note.

The People’s Bank of China (PBoC) has expanded its balance sheet by nearly RMB5tn or12% over the past 7 months, according to the latest data released by the central bank (Exhibit 1).

This larger-than-usual expansion has led some to claim that China isnowembarking on its own version of Quantitative Easing (QE) to stimulate the economy.

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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.