Goldman Sachs on China's economy: Confidence a big problem, private investment very weak

Goldman Sachs analysts cited in a media piece (gated):

• “Confidence is a big problem”
• “For consumers, there are concerns about the future — you don’t really want to spend. Private investment is also very weak. You talk to entrepreneurs, there is still a reluctance to engage.”

China's growth target for this year is around 5%, and with youth unemployment climbing:

• youth unemployment hit record 20.4% in April

social stability is high up on the scale of Chinese Communist Party concerns. More support for the economy does seem likely. The People's Bank of China seem to be responding by allowing the currency to weaken, to bolster export income:

Via various Chinese (and other) sources we hear much about de-dollarization. Its baloney, don't get sucked into it. Where the rubber hits the road the People's Bank of China is de-yuaning!