CCP begging Chinese banks to stop buying government bonds:

“Authorities have homed in on market players, rather than economic fundamentals, as the source of the problem. They have told analysts and economists working at banks to avoid topics such as deflation and comparisons with Japan’s stagnation. As bond investors search for safe investments, regulators have instructed them to stop driving down yields. Some small banks have been banned outright from buying government bonds or had purchases cancelled. On January 3rd the central bank called a meeting with fund managers to tell them to reduce bond buying, according to Reuters, a news agency. Stock exchanges have also called meetings with international investors in the hope of calming nerves. A Shanghai-based portfolio manager notes that many of these moves have only increased the sense of panic.”

Lost decade a la Japan incoming for China?