I found this chart to be a remakable one, given all the talk about excess Chinese debt. It’s true that’s mostly local government debt but this chart highlights just how much space Beijing has to stimulate in 2024 if it wants. The consensus belief is that China is trying to squeeze the excess out of the real estate market and that’s certainly been supported by China’s actions in 2023 but with inflation flat y/y and borrowing costs ultra-low, it’s only a matter of time until they hit the gas pedal.

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