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She lost most of her credit when she stated "I suspect if we get into a situation where we need some kind of sizeable bailout, the FX reserves will be on the table for capital injections into the state banks and then some sort of compound of bad debt and asset management companies (AMCs – Chinese “bad banks”) and other types of forebearance."
Which school of economics or finance has she attended? I want to blacklist that one. If the Chinese state owned banks require a bailout, the Chinese government can issue a huge sum of different durations of debt to the PBOC(directly or indirectly as what the US government and the Fed did) and PBOC can create the reserve to buy it and credit them into the state owned banks. This isn't any different from what the US government and the Fed did. The US government used TARP by issuing US Treasuries to save its financial institutions and the Fed purchased a lot of US treasuries through open market operations. For the Chinese government and PBOC, there is no need to pretend that it is a market transaction.
Which school of economics or finance has she attended? I want to blacklist that one. If the Chinese state owned banks require a bailout, the Chinese government can issue a huge sum of different durations of debt to the PBOC(directly or indirectly as what the US government and the Fed did) and PBOC can create the reserve to buy it and credit them into the state owned banks. This isn't any different from what the US government and the Fed did. The US government used TARP by issuing US Treasuries to save its financial institutions and the Fed purchased a lot of US treasuries through open market operations. For the Chinese government and PBOC, there is no need to pretend that it is a market transaction.