In China too, stimulatory monetary and financial conditions have not prevented economic deterioration

The orientation of monetary and financial conditions in China can be gauged by looking at: Money and credit; Short- and long-term interest rates; Banks’ required reserve ratios; The real exchange rate; Share prices and real estate prices. This shows that monetary and financial conditions in China have been very clearly expansionary since 2015. But this has not prevented a slowdown in growth, and in particular a slowdown in demand for industrial products and in residential construction: in China too, favourable monetary and financial conditions have not prevent ed economic deterioration , even in the part of the economy that is normally the most sensitive to the orientation of monetary and financial conditions.