China Rolling Out Big Stimulus Guns

1. Further to last week's coverage of the Zhongzhi failure, China is apparently bringing the big guns to bear to support domestic activity. China is also starting to see significant upticks in labour disputes and strikes, indicative of a fast-slowing economy.
2. It feels like early days right now but we wouldn't be surprised to see authorities start to moot "bad bank"-type activities again, in the mould of e.g. China Great Wall AM's workout of Agricultuaral Bank of China's bad loans twenty years ago (amongst several others).
3. This time banking system efforts seem more likely to be very focused on domestic real estate as this appears to be, so far, the key source of credit fears. Hopefully, a contained domestic situation but contagion can never be ruled out.

At least the nature of China's dirigist authorities means "whatever it takes" really does mean a lot here.