November 18, 2021

Chinese Reflation: Reaching An Inflection Point?

China’s latest macro numbers confirm that the economy has continued to decelerate across the board. The upshot is that Chinese policymakers appear to be awakening to the deteriorating growth numbers and are stepping up easing efforts, particularly in the real estate sector. We have been repeatedly warning that immediate policy loosening is urgently needed to avoid a major economic slump and a hard landing in the housing sector. It is encouraging that the Chinese authorities are finally taking action. What does this mean for Chinese growth? How will Chinese stocks perform Where does the RMB fit in?