China’s economy faces its largest financial collapse, with bonds yielding under 2%, banks insolvent. Limited credit demand in China drives bond buying, not QE.

This isn’t bullish as many claim. What’s happening is there’s limited demand for credit/leverage in China. Yet, b/c banks are sitting on liquidity, they are piling into Chinese bonds, which is driving rates on these bonds lower. While some are saying this is QE, THEY ARE WRONG. https://t.co/rIH1RNoXkP

— Gordon Johnson (@GordonJohnson19) December 17, 2024

‼️ China’s economy is experiencing its largest financial collapse since its 2002 emergence into the WTO. 10-yr Chinese govt bonds now yield 1.75% and 30-yr bonds are also below 2%. Banks are insolvent and leverage is 350% of ‘reported’ GDP. The first 14 trillion RMB fill a hole. pic.twitter.com/Q0RDu1pxOM

— 🇺🇸 Kyle Bass 🇹🇼 (@Jkylebass) December 16, 2024

china’s population…one of the more important charts you’ll see. pic.twitter.com/AVNBxfaTpD

— ian bremmer (@ianbremmer) December 16, 2024