Last year was truly “peak pessimism” in China. While the deflation threat was top of mind, the rapid decline in the Chinese 10-year yield was the result of investors all agreeing that property was toxic and so too were equities.

There was a massive, fixed income bid and with it rates declined sharply.

China has a closed capital account for all intents and purposes, so investors locally only have three options, property, stocks and bonds. Bitcoin is still in play here, but not to the extent it was a decade ago.

Thanks for the comment.