If we take a closer look at Fig 1b above, credit outflow within the Chinese economy has been slowing down at the start of 2021. If we look back at January 2020, where the Covid out break was first started, the Chinese Government has been injecting money into the market to sustain the fight of the Covid situation, the exponential growth even outpaced the pace of money supply growth back in 2016.
As such, China A50 index broke new high in July 2020. As such, the growth until February 2021 this year. Looking from the technical perspective, the China A50 index has potentially completed a 3-waves corrective pattern whereby the last leg has seen some slight rebound at 100.00% expansion level. That said, only by sustaining above the zone at 14,542.97-15,146.91 then we could confirm the 3-waves pattern completion. Coincidentally, the 1:1 expansionary level confluence with the multiyear resistance turned support zone.