Logo 23 Jul 2026

The cavalry isn’t coming: Why Beijing is prioritizing deleveraging over supporting demand

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To view this report as a PDF, click here. Executive summary

We expect Beijing to offer only modest stimulus this year, with RMB 500 billion in extra local government borrowing to be announced in September-October, keeping 2026 issuance near 2025 levels. We believe Beijing is prioritizing deleveragi...



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