China’s yuan has lost more value against the US dollar as interest rate cuts have yet to materialise, leading exporters to find whatever alternative assets they can until exchange differentials subside.
The People’s Bank of China has indicated its approval for trading treasury bonds on the secondary market, signalling more robust action to boost liquidity and fuel growth is no longer out of the question.
Total debt combining the household, corporate and government sectors climbed to 281.5% of gross domestic product in the second quarter, according to Bloomberg s calculations based on data from China s central bank and the National Bureau of Statistics. That was up from 279.7% in the first quarter.
The world’s debt nearly set a record high in the first quarter of 2023, with sharp increases in mature markets such as the US, according to the Institute of International Finance.