🚨 China announces a $1.4 TRILLION debt swap package to boost local governments.

This mechanism allows local governments to replace old debt with new debt, reducing debt costs and paving the way for new monetary stimulus.

It’s not yet direct fiscal stimulus with new money, but it may make it easier when that occurs.

For now, it’s not the liquidity injection the market has been expecting and seems more like stopping the bleeding with a “band-aid,” something that may change soon.