China’s First Quarter Recovery Is Unmistakable, Beige Book Says
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China’s economy showed “an unmistakable first-quarter recovery” after a weak end to 2018, though the level of new borrowing casts doubt on the sustainability of the rebound, according to the China Beige Book.
“The recovery extends across both sectors and geographies, with every major sector and each one of our regions showing better revenue results than Q4,” CBB International said in a report based on survey data. “Yet this rally didn’t appear out of nowhere, and there are at least three compelling reasons to doubt its staying power: credit, credit, and credit.”