China PMI’s

The Federation of Logistics PMI prints are out, still quite weak, which is interesting given that you can’t go a moment without hearing of sizeable liquidity injections into China’s banking system, of loans being underwritten (at almost any cost) to beleaguered firms (usually and most especially property developers).

Not much to get excited over.

Bloomberg were also out with an interesting coverage of a speech given by the PBOC (People’s Bank of China) Governor Pan Gongsheng, who (see snippet below) pointed to the pointlessness of the old model, prioritizing endless fixed asset investment (specifically infrastructure and property) as a means of generating economy activity.

With the below conclusion, which seems to quite strongly lower the odds of a government intent on re-igniting the old property bubble.

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