Deutsche Asset Management in Hong Kong nominate areas of significant areas of progress for debt unwinding in China:
- A drop in the stock of wealth-management products
- A slowdown in the growth of loans between financial institutions
- A drop in credit gains from shadow banking (eg. companies lending to other companies with banks as the middlemen)
DB say the POBC
- has managed to take out a lot of leverage out of the system and make the system safer by keeping overnight rates up and policy rates flat
- And financial market deleveraging "will be a real focus next year" after Xi consolidates his position