Some of the chatter around the place on what could be coming from the Chinese government and /or the People's Bank of China to provide further sup[port to the economy. These are the subject of market conjecture, not confirmed.
- The government is said to be considering bond issuance (sovereign bonds, ie. guaranteed by China) to provide liquidity to some troubled property developers
- PBOC considering buying bonds and loans of troubled developers
- state-owned banks to be required to buy of troubled developers
The measures being discussed are, as you can see, targeting the deeply troubled housing/property sector. Not far from the minds of Chinese Communist Party officials is the 1 in 5 rate of youth unemployment, a potential source of social instability.
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The public in China is not permitted to see images such as this, when the CCP crushed protestors to death under tanks. Senior CCP officials are familiar with this though and would be keen to avoid doing it again.
