Okay then

SCMP

China’s central bank, which has been pumping funds into the nation’s fragile economy over recent months, has suggested it will not flood the market with excessive liquidity, in a quarterly monetary policy document released on Monday.

The People’s Bank of China (PBOC) summarised its first quarter monetary policy committee meeting, during which the PBOC said it would block the “general valve” of money supply

The statement came after the country’s financial system pumped a record 8.2 trillion yuan (US$1.22 trillion) in credit into the economy in the first quarter of this year, including 5.8 trillion yuan worth of bank loans.

Excavator sales are way up, apparently so that there will be somewhere to bury the bad loans.

One Response to “Okay then”

  1. feeblemind Says:

    We always hear about China from the lending side but not from the borrowing side.

    So how is it working for the debtors of these bad loans?

    Is it just business as usual for them and they just aren’t repaying the loans?

    Do the unpaid loans keep accruing interest? Will the unpaid loans some day crush these businesses?

    Or have these businesses already ceased to exist?

    Are businesses already carrying bad loans, loaned even more more money to keep them afloat and the economy chugging along?

    Will they ever be required to pay them back?

    Just wondering.

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