China Securities Journal says some stimulus exit very likely, but no rate hike soon
A front-page article in the China Securities Journal, is a national securities newspaper, under the state media giant Xinhua News Agency.
- China very likely to exit some stimulus measures as the economy improves
- no rate hike soon though
From the piece (via Bloomberg):
- "If previous rounds of withdrawing stimulus policies are a guide, 'tight money' and 'tight credit' are inevitable, and policy rate hikes are also normal"
- "However, we shouldn't see the monetary authority proactively raising the policy rate for some time to come"
A front-page article like this is quite significant. The recent series of defaults by state-linked companies has sent shudders through China credit markets in past days and weeks. This might well add to that.