The Importance of Fiscal Stimulus in China

The PBOC has done a lot already, and it's not doing more because there's nothing else it can do. The problem is that the demand is very weak. If you let local governments to sell a lot of bonds to build infrastructure like highways and then subways, in the end, they have to repay the debt in like 10 years' time. And China is already having a massive local government debt problem. We have credit risks with corporates. So that is what can resolve the problem. Maybe a stimulus economy today,. But years from now, it can be a bigger problem for the government.