Since Q2 2020, China’s major macroeconomic indicators have displayed favorable signs of recovery. In H2 2020, we will continue to keep liquidity adequate at a reasonable level through monetary policies, which is expected to bring about expansion in RMB loans by nearly RMB20 trillion and growth in AFRE by over RMB30 trillion throughout the year.
This is not just an ex-post assessment, made in the light of what happened afterwards, but also an ex-ante one. It was obvious that in a crisis of confidence, such as had existed for months, the failure of a bank, even a medium-sized one, would have a contagion effect, triggering a flight from the system.