Unbeknownst to some, China was the first of the world's major central banks to tighten policy this year. The tightening, however, has been unconventional. China's economy needs to slow in some areas, but it isn't strong enough to withstand aggressive and broad-based tightening. The benefit of the PBoC's non-traditional lending is that it allows the bank to control credit without having a sizable impact on broader economic growth.
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