Is Chinese Liquidity Set to Boom Again in 2021?

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Chinese Liquidity – Does 2021 Look Like 1984?

 

China provided nearly one-third of the US$23 trillion surge in Global Liquidity in 2020, gunning her total lending up by an impressive 13%. Too many pundits fear that 2021 will now see a damaging policy tightening. We doubt it. With the US dollar skidding, Asian and Chinese policy-makers’ quest for export competitiveness will keep regional monetary policy loose. It may even get looser. China’s economy is a model of debt accumulation, but this fact tells us more about the long-term risks than reverse likely increases in stock and commodity prices in 2021.

 

 

See our latest published research, Global View -  – January 2021

 

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