Hong Kong 01 news, backed by Jiang Zemin and Zeng Qinghong, published an article on August 26 with the title: “Liquidity is sufficient, but no one wants it,” is clearly at odds with Xi Jinping’s propaganda system.
The article said, that recently, the People’s Bank of China has continuously lowered the medium-term lending facility (MLF) and the one-year loan prime rate (LPR) to reduce financing costs.
On August 12, the People’s Bank of China released financial data for July, showing that loans increased by 679 billion yuan (more than $98 billion) in July, but down 404.2 billion yuan ($58.5 billion) from the same period last year. If it is compared to the first half of this year’s data, the difference in the July data is even more obvious.
Moreover, the increase in the scale of social funding in July was 756.1 billion yuan (more than $109 billion). Comparing May and June data shows that social finance is more cautious.
The article also said that China’s M2 money supply at the end of July was $37.3 trillion, up 12% year-on-year. This growth rate far exceeded any single metric, but credit and social finance remained indifferent. It means that “money coming in like water is useless,” and it also indicates that the economic recovery was weaker than expected.
The article quoted a market analyst, who pointed out that the data is “a typical sign of a liquidity trap” and that “liquidity is abundant, but no one wants it.”
The article pointed out that the money supply has continued to flow in, but many companies are currently relatively weak and unable to drink the relief “water.” A large number of small and medium enterprises have been badly affected and bankrupted by the pandemic. They do not need financial resources. Market entities do not want to increase investment costs when expectations are unstable and tend to narrow businesses more to survive, which makes it difficult for monetary policy to be effective.
This is certainly a slap in the face to Xi Jinping’s government, and it is clearly a contradiction to the CCP’s propaganda system, according to Aboluowang.
However, Hong Kong 01’s move is not to expose the truth, but to be a public opinion battle waged by Jiang Zemin’s faction against Xi in the CCP’s internal fighting, the news agency stated.
Getting back to Hong Kong 01’s background. Hong Kong media Inmediahk published an article in 2016, indicating that Hong Kong 01 hid for a long time and finally revealed itself completely. Liberals and democrats should be on the alert to this media.
The article pointed out the characteristics of the “Communist Party’s newspaper,” “If you are not familiar with the writing style of a Communist Party newspaper, you can directly read the last paragraph of the article in Hong Kong 01. You will find its tone and purpose similar to a Communist Party newspaper.”