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. Looks like China is intent to reduce it's money supply.
. Banks reserve ratio had increased the same number of months to date .
. 6 times.
. And further considering increase interest rates 2 more time this year.
. Making it 4 times this year.
. Basically another 2 in Q3 & Q4
. Liquidity is further curtailed.
. The worry is although the effect is not seen now, but when it comes due to lag & multiple effect , it may come as an avalanche .
. But for sure China will still be growing.
. But a drop will be a drop.
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