Macro and Market Review
China: A Full-Fledged Deflation
Deflation prevails in China’s economy. Marginal interest rate cuts will be insufficient to boost growth as the economy is experiencing debt deflation and might be entering a liquidity trap. There will likely be more economic disappointments in the coming months. Chinese stocks will continue to sell off. Government bond yields will fall to new lows, and the RMB will depreciate further against the US dollar.
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BCA Research | China Investment Strategy
Evaluates both the cyclical trends and structural developments of China's economy, offering investment recommendations for China and the Greater China Region.
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