- The largely state-owned industrial sector is plagued by overcapacity, large debt, deflation and declining credit quality.
- The Chinese authorities have three ways of dealing with this, restructuring, devaluation, or stimulus.
- They seem to have chosen the path of least resistance; while this is good news in the very short run, it only increases the risks in the near future.
Dual Risk Out Of China
July 10th, 2016 · No Comments