Published on Monday, May 22, 2017 | Updated on Sunday, May 13, 2018

Financial deleveraging: two steps forward; one step back

Summary

After months of persistent regulatory tightening in domestic financial markets, China’s authorities unexpectedly fine-tuned their stance of monetary prudence by injecting liquidity into the banking sector. We interpret the authorities’ strategy as “two steps forward one step back”. After the market stabilizes and absorbs their messages, they are set to leap forward again.

Geographies

Authors

Betty Huang BBVA Research - Economist
Tomasa Rodrigo BBVA Research - Lead Economist
Le Xia BBVA Research - Chief Economist

Documents and files


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Report (PDF)

201705_ChinaWatch

English - May 22, 2017

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