On the first, one can point to the collapse in Chinese credit creation, which as we discussed two weeks ago, just posted its lowest growth on record...

...which some have attributed to local banks' unwillingness to inject new credit as a result of the surge in Chinese corporate defaults coupled with Beijing's lukewarm willingness to flood the system with another debt tsunami.

But what about local Chinese stocks? While not nearly as important for the local wealth effect as in the US - in China financial assets are at most 30% of household net worth compared to 70% in the US - the continued deterioration in the Shanghai Composite has been welcome by president Trump who frequently highlights the pain in Chinese risk assets as confirmation that  he is winning the trade war with Beijing.