People's Daily: China heading for economic policy shift

A People’s Daily article published yesterday showed that China’s leadership is trying to make a grand shift in the nation’s economic policies in a bid to say goodbye to debt ­fueled growth. According to the South China Morning Post: In a sign of distaste for the credit-pumped growth in the past couple of months, the Communist Party mouthpiece cited an unidentified “authoritative” figure as saying that boosting growth by increasing leverage was like “growing a tree in the air” and that a high leverage ratio could lead to a financial crisis. Economic growth was set to enter a so-called L-shaped trajectory and it was unrealistic to expect any rebound.