Why China’s fiscal bazooka is firing blanks

Chinese policymakers’ effort to transition away from monetary and credit-led stimulus toward direct on-budget fiscal channels to support the economy is hitting roadblocks. Fiscal expenditure so far this year has significantly lagged the target for 2020 set in the May budget, with central officials becoming increasingly vocal about the need to speed up spending.
View Post
Trivium China Investor Market Analysis

Special purpose bonds: We follow the money

Beijing has massively ramped up local government special purpose bond (SPB) issuance this year, but where the funds are going is unclear. We undertook a deep-dive analysis of local government SPBs to get a better sense of what is going on. Our research found that compared with previous years, there has been increased obfuscation in bond prospectuses as to where SPB funds will be spent.
View Post