Xi Jinping has been warning party leaders that there will be real struggle and sacrifices to be made by Chinese elites. I do not believe Xi plans on rescuing the corrupt and overextended. Xi changed lending requirements a couple of years ago and that was the signal to deleverage and get your financial house in order. Xi squashed several huge IPO’s and rebuked or jailed quite a few Chinese billionaires. Most of these weak and over leveraged companies turned to off balance sheet funding schemes that are running out now. Xi apparently intends to let the market work and cull the weak from the economy. China’s economy will be much smaller on paper but this is a truly capitalistic plan that will lead to a much stronger economy in the long run. Xi is very anti big bank finanialization. I wish the west would rein in banking in the west but the banks have captured the government and we’re run for the benefit of a few Oligarchs.
Btw , I keep hearing that the Chinese are carrying 300%+ debt to GDP. That’s not sustainable.
Last edited by Daveinjax; 10/14/21.
