What bond markets tell us on China’s economy?

Alicia Garcia Herrero, Natixis Asia Pacific Chief Economist, Bruegel Senior Fellow; Gary Ng, Natixis Asia Pacific Economist, Sectoral Research.

There is no doubt that China macro data has some drawbacks and needs to be complemented. One great source of information is China’s increasingly large and liquid bond markets, both onshore and offshore. Here are some takeaways on China’s economic activity, private credit and capital flows.