March data painted a mixed picture of China's recovery raising doubts about just how much China coming out of its COVID lock-down will spur global growth.
Which brings us to the point that Bruce Wilds details below via Advancing Time blog, that China is staying afloat by flooding its market with cash.... While this rebound may drive some commodity prices higher, the potential may be overstated.
The largest financial issue China must face is that its real estate market which made up north of 25% of its economy has imploded.
In the middle of January China's central bank pumped a record amount of short-term cash into the banking system as demand rose ahead of the Chinese New Year holidays.
The People's Bank of China added a record-high net 1.97 trillion yuan via open market operations according to Bloomberg.
With China now having put its One Belt One Road initiative into full motion, the world is busy trying to understand whether China deserves to be looked upon as a favorable force.
Returning to the issue of China influencing world markets by flooding the financial system with cash, this signals that China has a problem.
https://www.zerohedge.com/economics/china-floods-market-cash-mixed-data-leaves-covid-rebound-doubt
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