21 July 2016 at 23:38 GMT
Chinese companies are swimming in cheap cash. The problem is, they're not spending it. A reluctance to invest is frustrating policymakers after they unleashed a wave of cheap credit in an effort to stoke growth. Rather than build new plants or hire additional staff, corporates are opting to park money at the bank – or send it overseas through buying foreign assets. Known as the so-called "liquidity trap", it's a problem not unlike the experience in Japan where weak business confidence and a reluctance to invest is also holding back the economy.
Read full article at Bloomberg