LPR Cut May Not Drive Large Credit Rebound in China, Says CCB International’s Cui

The video discusses the limited impact of credit impulse and LPR changes on China's credit market. It highlights the small decline in interbank rates and the factors restricting credit demand, such as prudential regulations and trade uncertainties. The government's cautious approach prioritizes financial stability over aggressive credit growth. Small businesses rely on self-financing, and banks maintain risk premiums amid financial liberalization. Overall, the recovery of credit and small businesses depends more on improved business conditions than monetary policy changes.

What traditional method of stimulus is suggested for improving credit rebound?

Why are small businesses in China reluctant to borrow despite the need for investment?