China Stops Buying Bonds!

China's central bank, the PBOC, halted government bond purchases. This decision, driven by deflationary pressures, a surplus of low-performing bonds, and a weakening yuan, aims to stabilize the currency and prevent a bond market bubble. The move caused initial market volatility, but the PBOC plans to resume purchases once market conditions improve. Analysts offer varied perspectives on the long-term effects of this policy shift.