China's banks have been told to sacrifice $210 billion in profits to boost the economy. Because the banks are effectively guaranteed by the government, this is the equivalent of an increase in government debt equal to...
ft.com/content/647ad6…
roughly 1.5 percentage points of GDP which, rather than show up in the official debt numbers, represents an increase in the government's contingent liabilities.
This is also the equivalent of a subsidy to borrowers, mostly manufacturers, and is part of the explanation...
of why Chinese exports have recovered so quickly.