China Q2 2017 Report
The Stabilization of Economic Growth
The latest date reported of the Chinese economy shows contradictory signs for one of the world’s most complex economies. During the second quarter of 2017, economic activity in the Asian Giant has continued to emphasize its dual personality. Economic activity, internal and external, seems to have strengthened its growth and the increase of certain credit segments reinforces this trend for the coming months. The greatest danger for China continues to be the excessive accumulation of debt. The country seems to be fighting against this threat with various tools, such as the extension of medium-term loans by the central bank and an increase in debt-to-equity swaps that help improve the quality of assets in bank balance sheets, although hurting the overall liquidity of the system. In this report we have introduced new sections on economic growth, the domestic market, and corporate debt, as well as the real estate sector.