China News

I pay far less attention to China’s growth numbers today. What matters more is where fiscal capacity is flowing. China has entered a phase where population ageing, security needs and industrial upgrading all draw on the same budget. This shift follows a structural adjustment in property. Income from land sales – once a pillar of local government finance – has fallen sharply and is unlikely to return. Balance sheets will have to be reset. The question is no longer how much stimulus Beijing can...

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