MH.Yang
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China has 3.2 trillion US dollars in foreign exchange reserves, 900 billion US treasury bond, 9.3 trillion US dollars in international financial assets and 3.3 trillion US dollars in obligatory right. And China has a surplus of nearly one trillion US dollars annually.deflation does not means you do not lack money, in fact, when you say "lack investment channel" it mean you don't have enough capital flow, which mean you don't have enough money.......
The problem with any Chinese bank dealing with international loan is the same old problem, it's capital control. Unless RMB can free flow, China most likely will not deal large amount of loan in RMB. And you cannot comment the same way between USD and CYN, one is freely floated, one is not, USD would represent the actual market environment, CYN represent CCP monetary policy.
Do you think the Chinese govt is short of money?
The current situation in China is caused by the Chinese people's risk aversion mentality during the epidemic. In 2022, China's total national deposits increased by 17.84 trillion CNY (2.5 trillion US dollars), with a 71% increase in total deposits. Chinese people deposit all their money in banks, and liquidity will naturally decrease. But you guessed it a bit correctly. The Chinese govt really doesn't want to print money to solve the problem, because the market doesn't actually lack money, it just goes into banks. So the Chinese govt needs appropriate investment channels to return bank money to the market through investment.