There are many parallels between the current lending boom in China and that in the late-1980s which brought down Japan’s economy. But there are several reasons to think China will avoid the same fate.

Despite further evidence of economic strength, China’s monthly data for October suggested that commodity stockpiling is waning. Lending growth declined more than expected, but credit policy is set to...

The latest PMI data support our view that growth in China remains strong. However, the People’s Bank appears to disagree, with potentially major implications for the policy outlook.