Officially, the People’s Bank of China says it won’t comment on the prediction by the former Morgan Stanley chief Asian economist that China will cut new loans in half. But we can’t be the only ones who suspect Andy Xie’s “prediction” is actually an unofficial way for the Chinese government to announce its policy.
“The government is worried that this bubble is becoming too big so they’re going to cut credit growth by probably half in the second half,”Xie said in a Bloomberg Television interview. “I think the property and stock markets will come under pressure probably around October time.”
That certainly doesn’t sound like an ordinary analyst prediction. What do you think? Is Xie conveying the unofficial official policy or just making a bold prediction?
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