China: Central bank has ordered banks to limit new loans in Q1 - BBH

Research Team at BBH notes that the press reports suggest that China’s central bank has ordered banks to limit new loans in Q1. 

Key Quotes

“The PBOC reportedly emphasized its concern about mortgage lending.  Reports also suggest that it may make some lenders pay more for deposit insurance.  While the mainland economy has stabilized, we too have expressed concern that this is being driven by a return to the debt-dependent growth model.  If reports are true, then we would expect the economy to slow as we move through 2017.  For now, China is not one of the major market drivers but this news would clearly be negative for risk and EM.”