China Is on a Credit Cleanup Trend: Goldman’s Ho

The video discusses China's ongoing credit cleanup since 2016, highlighting increased defaults and reduced government support, challenging the 'too big to fail' notion. It examines investor behavior shifts, market repricing, and the focus on loss avoidance. The video also explores government support dynamics, emphasizing strategic importance and reduced bailouts. Key policy areas include real estate, local government debt, and shadow banking.

How has the implicit government support for borrowers in China changed over time?

What implications does the shift in credit dynamics have for foreign investors in China?

What are the three areas that policymakers in China are focusing on to manage credit risks?