The data and rate cut info from China is here from earlier:
- China's jobless rate for 16 to 24 year olds has hit its highest ever recorded
- China July Industrial Production 3.8% y/y (vs. expected 4.6%)
- China July new house prices down 0.9% y/y (down 0.5% prior)
- Rate cuts from the PBOC: 1-Year MLF loans rate to 2.75% from 2.85%, repo rate cut also
- PBOC sells 400bn yuan 1 year MLF AT A LOWER RATE
The data was awful.
Reuters have a quick recap up, this comment (most interesting part is in italics) from an analyst is worrying:
Wang Jun, economist at Zhongyuan Bank, believe authorities will focus on implementing existing policies, rather than roll out aggressive new stimulus.
"We are now facing a typical liquidity trap problem. No matter how loose the credit supply is, companies and consumers are cautious in taking on more debt," Wang said. "Some of them are now even paying back their debt in advance. This may herald a recession."
--Sheesh, we have some property buyers refusing to oay thier loans (fair enough, thier homes are not being built by failing devleopers) on the one hand, and spme paying back loans in advance because they do not want the debt.
Ugh.
It might be time for the CCP to stop flinging missiles at Tawian and focus on domestic problems.
USD/CNH update, yuan lost ground on the rate cut tody:
