In this note we give an overview of the key takeaways from a trip to China during which we talked to banks, institutions and corporates.
The main conclusions are:
China is generally expected to see short-term stabilisation and moderate recovery.
Medium term, China still struggles with three big structural challenges: a) substantial overcapacity in many sectors, b) debt overhang, and c) a difficult rebalancing process.
Chinese rebalancing is a strong focus which is likely to continue in the coming years.
More interest-rate cuts and cuts in the RRR (reserve requirement ratio) are likely.
Financial reforms accelerated this year. That will continue in coming years.
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