PIMCO has some advice for the People's Bank of China on credit expansion

"The only way to slow it down is to impose tight constraints."

That's Gene Frieda, executive vice president and global strategist for emerging markets at Pacific Investment Management Co.:

  • "The cautious type of tightening usually doesn't work that well for China" as it turns into a "cat-and-mouse game" between regulators and lenders,
  • "If there's a willingness to allow credit to expand, credit expands. The only way to slow it down is to impose tight constraints."

Has other views also;

  • yuan stable near term due to tighter capital controls
  • yuan will decline in the long run
    Liquidity will remain tight in the offshore yuan market as China has reduced channels for the currency to flow offshore

and plenty more at the Bloomberg piece, in full here: Pimco Says China Needs to Get Tougher in Cat-and-Mouse Debt Game