MBCC TH 20th June'23 - "Covid just delayed the inevitable slowdown in China, they are trying to "stimulate" by lowering MLF/LPR, but it will not be enough!"
The market got so obsessed with Covid in 2020 onwards, that no one can even remember what the state of global markets/economy was in 2019 prior to all this. Anyone remember the 2019 Repo crisis and the “technical plumbing” the Fed was obsessed with at the time? Probably not!
Well it’s coming back to bite us in the —s pretty soon! China knows this and they are worried. They are only trying to do whatever little they can but the new lowered LPR/MLF rates will NOT help consumers buy more properties…
Why China cannot save the world? Why it needs developed markets for its own economy…all this and more in today’s note!
It’s not just about value…