As you can see in today’s Chart of The Day (slide 93 in the Q2 Macro Themesdeck), China’s Secondary Industries (Heavy Equipment, Construction, pseudo “empty cities”, etc.) slowed to 0% growth, TWICE, in the last decade:
- During the Great Financial Crisis and
- During the Deflationary Slowing of 2016
After the 2nd #ChinaSlowing to 0% growth (2016), the PBOC provided the biggest monetary stimulus in the history of China (yep, that’s a long history!).