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"This Is Bearish" Goldman Warns, Saying Not To Expect More China Stimulus
03-12-2020, 11:54 AM,
#1
"This Is Bearish" Goldman Warns, Saying Not To Expect More China Stimulus
"This Is Bearish" Goldman Warns, Saying Not To Expect More China Stimulus

<span property="schema:name" class="field field--name-title field--type-string field--label-hidden">"This Is Bearish" Goldman Warns, Saying Not To Expect More China Stimulus</span>

<div property="schema:text" class="clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item"><p>With the US scrambling to come up with a fiscal stimulus response or <em>any </em>credible response to the coronavirus pandemic for that matter, investors have been looking to China with growing desperation to bail them out - just as it did in 2008. Only it's not looking too good, because one day after China - whose debt/GDP is now about 350% compared to just over 100% during the financial crisis - reported a huge drop in its monthly credit injection as measured by its February's Total Social Financing series, which crashed to a record low after January's record high...</p>

<p><a data-image-external-href="" data-image-href="/s3/files/inline-images/China%20TSF%203.12.jpg?itok=u31PwkoA" data-link-option="0" href="https://www.zerohedge.com/s3/files/inline-images/China%20TSF%203.12.jpg?itok=u31PwkoA"><picture><!--[if IE 9]><video style="display: none;"><![endif]--><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/China%20TSF%203.12.jpg?itok=247aNjx6 1x" media="all and (min-width: 1280px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/China%20TSF%203.12.jpg?itok=247aNjx6 1x" media="all and (min-width: 480px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/China%20TSF%203.12.jpg?itok=247aNjx6 1x, https://zh-prod-1cc738ca-7d3b-4a72-b792-...k=247aNjx6 2x" media="all and (min-width: 1024px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_desktop/public/inline-images/China%20TSF%203.12.jpg?itok=247aNjx6 1x" media="all and (min-width: 768px)" type="image/jpeg"></source><source srcset="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/China%20TSF%203.12.jpg?itok=u31PwkoA 1x" type="image/jpeg"></source><!--[if IE 9]></video><![endif]--><img data-entity-type="file" data-entity-uuid="1f78a600-0b89-45c2-83fc-797bbfaac517" data-responsive-image-style="inline_images" height="239" width="500" src="https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/China%20TSF%203.12.jpg" alt="" typeof="foaf:Image" /></picture></a></p>

<p>... earlier this morning Goldman's commodity sales desk blasted out a short and sweet email, which may have crushed any hopes that China will bailout the market.</p>

<p>Citing a quote by China's premier Li, published overnight in an official <a href="http://www.gov.cn/premier/2020-03/12/content_5490395.htm">Chinese government website</a>:</p>

<blockquote>
<p>只要今年就业稳住了,经济增速高一点低一点都没什么了不起的</p>
</blockquote>

<p>... which Goldman's desk translates as the following:</p>

<blockquote>
<p><strong>"As long as we stablize the economy this year, and as long as employment is stable this year, it will not be a big deal if the economic growth rate is higher or lower."</strong></p>
</blockquote>

<p>Goldman's Adam Gillard writes that this is confirmation that Premier Li is now guiding down stimulus, and warns that "<strong>Chinese investors have fully priced stimulus, which is why Oct rebar is unchanged vs pre-virus levels, despite record inventories.</strong>"</p>

<p>His conclusion, which one can confirm by taking a quick look at any market today, was simple: "<strong>This is bearish.</strong>"</p>
</div>
<span rel="schema:author" class="field field--name-uid field--type-entity-reference field--label-hidden">
<a href="https://www.zerohedge.com/users/tyler-durden">Tyler Durden</a>
</span>
<span property="schema:dateCreated" content="2020-03-12T15:40:00+00:00" class="field field--name-created field--type-created field--label-hidden">Thu, 03/12/2020 - 11:40</span><img src="http://feeds.feedburner.com/~r/zerohedge/feed/~4/WpBZPARvLA4" height="1" width="1" alt=""/>


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