China's plan for short-term pain leading to long-term gain is dubbed Likonomics - for Premier Li...
China's plan for short-term pain leading to long-term gain is dubbed Likonomics - for Premier Li Keqiang - by Barclays, who says it's just what's needed to put the country's economy on a sustainable path of 6-8% growth for the next decade. Unfortunately for the short term, the plan's 3 pillars - no stimulus, deleveraging, and structural reform - mean a "temporary hard landing" of economic growth of just 3% sometime soon. Shanghai (FXI, CAF) was flat overnight, and is off nearly 15% YTD.
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