- 2018 has been the most volatile year for Chinese stocks since the market crash of 2015.
- However, JP Morgan says the buildup of debt over that time means policy makers will need to use different tools to maintain economic growth.
- Instead of cutting interest rates, authorities will focus on tax cuts and infrastructure spending, with other policy tweaks to help free up liquidity.
The volatility in Chinese markets this year has brought back memories of 2015, when sharp falls in Chinese stocks sent shock-waves through global markets.
However, theres now a lot more debt in the economy than there was three years ago, JP Morgan says.
And as a result, policymakers will have to adopt a different strat…
Read the full article at: https://www.businessinsider.com.au/china-property-debt-share-pledge-collateral-2018-10