Morning from Europe.

This chart made the rounds yesterday as the Chinese authorities “forgot” to cut the 5yr loan prime rate, maybe in an attempt to keep bank margins intact despite the malaise in the real estate market.

The positive reading is that China is about to launch more targeted measures for the Real Estate sector but we are admittedly running out of patience. We need to remember that this Real Estate crisis was designed by the CCP and yet they are unwilling to truly turn the tide on the development.

The BRICS meeting starts today and let’s see whether China has anything in store for us. We are starting to doubt it.

Chart 1: Did the Chinese authorities “forget” to cut 5yr benchmark rates?