The question PIMCO is addressing here is "When will China's credit drop affect growth?"
China's "credit impulse" the change in the growth rate of aggregate credit to GDP
- relevance of the Chinese credit impulse to global reflation cannot be overstated ... key driver of realized global reflation has been China
- the decline in the credit impulse has been sharper and more extreme than many expected
- ... portends a material drag on Chinese growth in the year ahead
The full piece is here, from Gene Frieda - a global strategist based in PIMCO's London office
AUD bears will like this.