Our value chain model indicates that the illiquidity in these segments such as real estate development, coal mining, or car manufacture is not related to the recent cooling demand. In fact, the pressure in liquidity is traceable back to years of changes in industrial structure as a result of natural shifting in economic activities, subjective policies, and thus the unfavored credit market.

Therefore, the relatively small size and segment selection of China's monetary stimulus in pandemic are actually initiative picking of timing in the current domestic and global situation as it is in digital technology or geopolitics.

A quick, moderate extension in center bank's purchasing will help prevent the panic from spreading in credit market and thus the damage from equity market.

We may see more default cases even when China economy's recovery is deeply stabilized. The default of AAA bonds is not making China's assets less attractive. It may be just the opposite because we see more confidence presented in the opening in capital market, the cautiousness when facing charming fin-tech, or the downsizing of overfloated rating in state-owned companies.