China May Add Stimulus as Credit Growth Slumps

The transcript discusses concerns about Beijing's economic growth, highlighting the lack of evidence for improvement in the latest data. It examines the drop in aggregate social financing, local government bond issuance, and new Yuan loans, indicating issues with liquidity and the transmission mechanism. The impact of deleveraging on shadow banking and financial risks is also analyzed. Economists suggest that these factors may lead to more aggressive policy measures, including potential rate cuts.

What impact does the shadow banking sector have on private companies?

What potential actions might policymakers in Beijing take in response to current economic conditions?