Beijing Borrows at Fastest Pace on Record

Is this a is just a good sign that they're stepping up and getting the money to do infrastructure to relieve financial stress off some of the more local areas of the country. Is it a not so good sign because they need to do this. How should we understand this. Well I think it's a sign that there is action being taken because you had these local governments really take a one to punch. On one hand you had zero covid all the spending they had to do for testing for quarantining plus the drag on the local economy and the hit to tax revenue. Then you also had the property market home sales falling tremendously. They're not being demand for land which had been a huge source of revenue for these local governments.

And as a result is China is trying to get the economy going again. These local governments they don't have the money to spend on infrastructure and spend otherwise to get growth ramped up again. And now you see the central government barring in the first quarter at the fastest pace since at least 1997. And that is a sign that the central government is trying to step in and get the economy going again.

Bonds, China, China Economy, China Government, Haidi Stroud-Watts, John Liu, Kathleen Hays, debt