Lending set to fuel investment-led rebound in short-term

Today’s strong lending data cast last week’s rate cut in a new light. Policy is being eased further even though earlier stimulus measures had already started to take effect. That suggests the government is hoping for a significant rebound in GDP growth. We believe it will get one in the near-term, but only at the cost of further entrenching the economy’s unsustainable reliance on investment.

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