Chinese Companies are not sowing back into the Economy

Chinese companies are loaded with cheap cash. The problem is they are not spending it. This is frustrating policy makers who made a lot of effort to introduce liquidity into the Chinese market. However, Chinese companies are not willing to invest, and would rather keep their money in the banks. They are not opening new plants, neither are they hiring new staff. It’s the proverbial hiding your money under the pillow scenario playing out at present.

This will affect China’s already slowing economic growth.


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