Presented with little comment aside to ask, if everything's so hunky-dory over in China then why, on the first day in a while that the PBOC decides not to conduct repo operations (i.e. inject a bucketload of cheap money), does the 7-day repo rate (the cost of borrowing money) spike to 6-month highs? (Hint: it's a rhetorical question)
Simply put - you can kiss goodbye any hopes of China ceasing its exuberant credit creation... (especially now that the CCFD ponzi scheme has been exposed via Qingdao -and drastically reduced that channel). Reforms are all talk and the bubble will just grow bigger with fewer and fewer attractive outlets for that hot money (now that the US real estate transmission channel has been identified and likely closed)... cue real inflation.