Michael Pettis(@michaelxpettis):Bloomberg: "Rules requiring that only eligible projects qualify for a key funding program – one announced by China nearly half a year ago to shore up investment – may impose “greater constraints” on its deployment, according to Caitong analysts. That’s partly because the sectors it’s meant to finance are “highly” similar to those covered by the same initiative last year, narrowing the pool of shovel-ready initiatives." As has been the case for years, Beijing's desire to spend money to keep growth from missing excessively high GDP growth targets far exceeds the number of worthwhile projects on which to spend, with the growing gap between the two showing up in the surging debt burden.

2026.08.26 03:08

Bloomberg: "Rules requiring that only eligible projects qualify for a key funding program – one announced by China nearly half a year ago to shore up investment – may impose “greater constraints” on its deployment, according to Caitong analysts. That’s partly because the sectors it’s meant to finance are “highly” similar to those covered by the same initiative last year, narrowing the pool of shovel-ready initiatives." As has been the case for years, Beijing's desire to spend money to keep growth from missing excessively high GDP growth targets far exceeds the number of worthwhile projects on which to spend, with the growing gap between the two showing up in the surging debt burden.