The
country is dealing with a falling currency, an incredibly volatile
stock market, and thinning corporate margins in sectors that used to
drive the country's growth.
These are huge structural problems that will require both brilliance and cold hard cash to solve. The question is, how much?
According
to Charlene Chu of Autonomous Research, who is widely considered one of
the best (if not the best) China analyst in the world, it's going to
take more money than you could possibly imagine.
"Larger
credit injections are possible, but we would need to see CNY37.5trn in
net new credit in 2016 to achieve the same magnitude credit impulse as
in 2009," Chu wrote in an email to Business Insider.
That is $5.7 trillion. $5.7 trillion!
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