The politics of credit allocation in China

CHINA ADVISORY - Report 29 Mar 2019 by Andrew Collier

Discussions of China’s various stimulus programs focus on the growth of total social financing, bond purchases, swaps and other announced “official” credit policies. However, one important aspect of credit intermediation has been overlooked: geography. This political credit allocation by geography is at least, if not more, important than the other forms of credit allocation due to its size and the lack of transparency.

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