China Should Aid Cash Flows For Businesses, Individuals

China should plan and introduce more extraordinary incremental policies to help small businesses and people affected by the epidemic to improve their cash flow, wrote Guan Tao, chief economist at BOC Securities in a blog post. Currently, the market is reluctant to borrow, and banks are afraid to lend due to weaker cash flows at companies and for individuals entering the third year of Covid-19 outbreaks, said Guan. If the private sector continues to add leverage, it could erode their financial health and will take a long time for companies and individuals to repair their balance sheets in the future, which will drag down the pace of economic recovery, said Guan.