Macro Insights Weekly: What will mark China's trough?

China’s cyclical soft patch keeps deepening, as underscored by a wide range of recent data spanning from retail sales to credit, prices to exports. We examine what is needed for a trough to form.
Post pandemic recovery has been underwhelming due to weak business and consumer confidence
Intersection of weak property prices and a mountain of debt in the sector is a major fault line
What’s needed?
- decisive move to address local government debt
- targeted measures to restructure property sector, with active private sector participation
- easing of regulations on entrepreneurial activities