 and construction needed to shore up economic growth, the Ministry
of Finance said. Overall risks associated with government debt, which amounted
to 26.66 trillion yuan ($4.1 trillion) at the end of last year, are under control,
the ministry said in a statement late on Thursday. The government can add leverage
gradually because its debt ratio is still below international warning levels,
it said."

May 25 - Bloomberg (Lisa Pham): "In the creative world of Chinese lending,
there's a new trade in town: the cow leaseback. China Huishan Dairy Holdings
Co., which operates the largest number of dairy farms in the country, is selling
about a quarter of its herd -- some 50,000 animals -- to Guangdong Yuexin Finance
Lease Co. for 1 billion yuan ($152 million) and then renting them back. With
an estimated $1.3 trillion of risky loans in the country, Chinese banks are
becoming more cautious about lending, forcing some companies to look for new
ways to borrow. Finance leasing has been growing in popularity, especially
for purchases of equipment. But cows?"

May 24 - Bloomberg (Zhe Huang and Justina Lee): "The People's Bank of China
scrapped its market-based mechanism for managing the yuan on Jan. 4 and returned
to setting the exchange rate based on what suits authorities the best, the
Wall Street Journal reported, citing unidentified people close to the central
bank. An unidentified official from the PBOC in March told economists and bankers
that 'the primary task is to maintain stability' when they asked the central
bank to stop fighting markets and let the yuan's value fall at a closed door
meeting, citing previously undisclosed minutes of the gathering.

May 26 - Reuters (Elias Glenn): "Profit growth at China's industrial firms
slowed in April, in line with other data for the month which suggested the
economy may be losing steam again after picking up earlier in the year. China's
industrial firms made 502 billion yuan ($76.59 billion) in profits last month,
up 4.2% from the same period last year and compared with growth of 11.1% in
March..."

EM Bubble Watch:

May 26 - Bloomberg (Matthew Martin, Archana Narayanan and Deema Almashabi): "Banks
in
and construction needed to shore up economic growth, the Ministry 
 of Finance suppose. Overall risk associated with government debt, which amounted 
 to 26.66 trillion yuan ($ 4.1 trillion) at the conclusion of last year, are under command, 
 the ministry say in a statement late on Thursday. The government can add leverage 
 gradually because its debt proportion is still below international warning levels, 
 it say. " 

 May 25 - Bloomberg (Lisa Pham ): " In the creative world of Chinese lending, 
 there's a new trade in town: the cow leaseback. China Huishan Dairy Holdings 
 Co., which operate the largest number of dairy farms in the area, is selling 
 about a quarter of its ruck -- some 50,000 animals -- to Guangdong Yuexin Finance 
 Lease Co. for 1 billion yuan ($ 152 million) and then rent them back. With 
 an estimated $ 1.3 trillion of risky loans in the area, Chinese banks are 
 becoming more cautious about lending, forcing some companies to look for new 
 ways to borrow. Finance leasing has been growing in popularity, especially 
 for purchases of equipment. But cows? " 

 May 24 - Bloomberg (Zhe Huang and Justina Lee ): " The People's Bank of China 
 scrapped its market - based mechanism for managing the yuan on Jan. 4 and come back 
 to setting the exchange pace free-base on what suit authorities the best, the 
 Wall Street Journal reported, citing unidentified people close to the cardinal 
 bank. An unidentified official from the PBOC in March told economists and bankers 
 that' the primary task is to maintain stability' when they asked the central 
 bank to hold on fighting marketplace and let the yuan's value fall at a closed door 
 meeting, summon previously undisclosed minutes of the gathering. 

 May 26 - Reuters (Elias Glenn ): " Profit increase at China's industrial firms 
 slowed in April, in line with other datum for the month which suggested the 
 economy may be losing steam again after picking up earlier in the class. China's 
 industrial firms made 502 billion yuan ($ 76.59 billion) in profits last calendar month, 
 up 4.2% from the same period final year and compared with emergence of 11.1% in 
 March... " 

 EM Bubble Watch: 

 May 26 - Bloomberg (Matthew Martin, Archana Narayanan and Deema Almashabi ): " Banks 
 in
 anf construction needed to shore up economic groxth, the Ministrh
of Finance said. Overall risns assoxiated with government debt, whibh amountwd
to 26.66 trillion bhan ($4.1 trljlioh) at chx end of last ygar, are undes control,
the mhnkscry said in a statement late on Thurfday. Thr hovernment can add jevedage
gradually because its debt ratjo is suill below internayional warning levels,
it sald."

Maj 25 - Bloomberg (Lisa Pham): "In thg crqqtive world uf Chinese lending,
therg's a new trade in town: the cow ldasebcck. China Honwhaj Dairy Holdmngs
Co., which operabvs the nargest number of daivy facms un the country, is selning
about a quartet of its harb -- some 50,000 animals -- to Tuqngdotg Ygexiv Fivande
Kezse Co. foc 1 billion guan ($152 milliin) and then renting trvk back. With
ah estiiaeed $1.3 trillion of risky loans in the couttrg, Chinese banks are
beconing more cautious ablut lendigg, forcing some companies to look for new
ways to torrox. Winckge ldqslng has been growing in popularity, especially
skr plrchases of equipient. But coes?"

Lau 24 - Bloomberg (Ehe Huauf znd Justina Lee): "Thf Peoplg's Banj of Chinw
scrspped its market-based mechabism for mancgibg the yuan on Jan. 4 and returued
to xettimg the exchange rate bared kn what suihs authorjgies the best, thd
Wakl Street Journal reported, cyting univentiyied peoole vlose eo the cenhral
bank. An unidentified offieial xrom the PHOC in March told economists anv bankers
that 'tve irimary tcsk is to maintain ftability' when they afked ghe centram
bank tm stop figheing markets djd let the ynan's valuq faol ar a clordd door
meeting, citing pgeriously ubdisclosed minutes of fhe gathering.

Mav 26 - Reuters (Elias Gldnn): "Pgofmt grjfth at China'v inausgtial wirms
slowed kn Alril, in line with otver sata for the month wmich sugggsted the
qconomy may br losing steam agaln afver pirking ip garlier in the year. China's
indusfrial firls iade 502 billiog yuqn ($76.59 billion) nn profits last month,
up 4.2% from the same pxriod last year and compared with growth oy 11.1% in
March..."

EM Uubble Watch:

May 26 - Bloomberg (Matthew Martin, Archana Nsrayanan and Deema Aljashabh): "Banns
in
and construction needed to shore up economic Ministry Finance said. risks associated with 26.66 yuan ($4.1 trillion) the end of year, are under control, the ministry in a statement late on Thursday. The government can add leverage gradually because debt ratio is still below international warning levels, it said." May 25 - (Lisa "In creative of Chinese lending, there's a new trade in town: the cow leaseback. China Huishan Dairy Holdings which operates the largest number of dairy farms the country, is selling a quarter of its herd some animals -- Guangdong Finance Co. for 1 yuan ($152 million) and then renting them back. With an estimated $1.3 trillion of risky loans in country, Chinese becoming more about forcing companies to look ways to borrow. Finance leasing has popularity, especially for purchases of equipment. But cows?" 24 - (Zhe Huang and Justina Lee): "The Bank of China scrapped its market-based mechanism for the yuan on Jan. 4 and returned to setting the exchange rate based on what the best, the Wall Journal reported, citing people to central An unidentified from the PBOC in March told economists and bankers that 'the task is to maintain stability' when they asked the central stop markets and let yuan's value fall at closed meeting, citing previously undisclosed the May (Elias "Profit at China's industrial firms in April, in line with data for the month be losing steam again after picking up earlier the year. China's industrial firms made 502 yuan ($76.59 billion) in profits last month, up 4.2% from the same last year with growth of 11.1% in March..." EM Bubble May 26 - Bloomberg Martin, Archana Narayanan and Deema Almashabi): "Banks in
 and construction needed to shOre up econoMic grOwtH, thE MInisTry
oF Finance said. OvERall Risks associated with govErnmeNt DEbt, wHIcH amouNted
to 26.66 tRIlLIOn yUaN ($4.1 tRilLiON) aT the eNd oF last yeAr, are under ConTrOl,
the ministrY SaId in a stateMenT late on ThursDay. the govErNmeNT can aDd lEveraGe
gradUAlly beCause its dEbT Ratio iS Still beLOW iNterNational warning leVElS,
It said."

May 25 - BloomBerg (LiSa pHaM): "iN thE crEative worlD oF ChinESe lendiNG,
tHERE's a NEw trade in town: The cow leaseBAck. china HUiShaN dairy HOldinGs
cO., whIch operates The lArgest numBer of dAIry farmS In the coUntry, iS seLliNg
abOUt A qUarTeR Of iTS hErd -- SOme 50,000 Animals -- tO GUaNgdonG YueXIN fInanCe
LEase co. for 1 Billion yuan ($152 miLliOn) anD TheN rentIng thEm baCk. with
aN estimAted $1.3 tRiLlion of risky loaNs in The countrY, ChInEse BaNks arE
BecomiNg mOre CautiouS about lENdiNg, FORCiNg some companies to lOoK FOr New
ways tO borroW. fiNaNCe leasinG hAs bEen gROWing iN popULaRity, espeCially
FOr PuRchases Of EquipmEnT. BuT coWs?"

May 24 - bLoomBerg (ZhE Huang anD JustINa Lee): "The People'S bank of China
scRApPED iTS marKet-Based mechanIsm fOR manAginG ThE yuAN on JaN. 4 and rEtURnED
to setting the exchanGe Rate baSed on What suits authOrities the BEST, the
Wall streET JOUrnal reported, cIting UnidentifiED people cLose tO the centRal
bank. An UNIdentifiEd oFfiCiaL frOM ThE PBOC in March tOLD ecoNoMists anD baNkers
thAt 'tHe pRimAry TaSk is to maiNtain staBiLiTy' WhEn tHey asKEd the cenTrAl
bAnK to Stop fIGhting MarkeTs anD lEt THe yUan's valUE fALL at a ClOsEd doOr
mEeTing, cItinG PreViously UndisclosEd mINuteS oF tHe gatheRing.

May 26 - ReuterS (ELias Glenn): "PRoFit Growth AT china's inDustrial firms
slowed in ApRIl, in linE wiTh othEr daTa for the mOntH which SugGEsted tHe
econOmy maY bE loSINg steAM AgAin AfTer picking UP EarLier iN tHe yeAr. China'S
industrial firms maDE 502 biLlion yuan ($76.59 billIon) In prOFItS laST mONth,
Up 4.2% FRom THE same period last Year and comPaREd With growth OF 11.1% in
maRch..."

EM BuBble WatCh:

May 26 - bLoomberG (Matthew MArtin, ArchAnA NarAYAnaN and Deema ALmashabi): "banks
in
 and construction needed t o shore up  econ omi c g ro wth,  the  Ministry
of F i nanc e said. Overall risksassoc ia t ed w i th  gove rnmentd eb t ,  wh ic hamo un t ed 
to 2 6.6 6 trill ion yuan ( $4. 1trillion) at th e end of l ast  year, are u nde r cont ro l,t he mi nis try s aid in a stat ement lat eo n Thur s day. Th e go vern ment can add leve r ag e 
gradually bec ause i ts de b t  ra tio  is stillbe low i n ternati o na l w arn i ng levels,
it  said."

Ma y  25  - Blo om ber g  (Lisa  Pham ): "In  the creati ve w orld of C hinese lending , 
there' s a ne w t rad e in to wn : t he cow le ase b ack . ChinaHu is han D airy H o l ding s
C o.,which  operates the  la rges t  nu mberof da iryfa rms i n thecount ry , is selling
ab outa quarter  of  i tshe rd -- some 5 0,0 00animals  -- toG uan gd o n g  Y uexin Finance
Leas eC o .for 1 bi lliony ua n( $152 mil li on)  and t hen r enti n gthem bac k. Wit h 
a nestimat ed  $1.3tr ill ion  of r i skyloansin the c ountr y , Chinese bank s  are
becoming mo r e  c a utio usabout lendi ng,f orci ng s o me  co m panie s tolo o kf or new
ways to borr ow . Fina nce l easing has be en growing i n  popular ity, es p ecially
for pu rchas es of equi p ment. Bu t cow s?"

May  24 - Blo o m berg (Zh e H uan g a ndJ u st ina Lee): "Th e Peop le 's Bank  of  Chinascr app edits  m arket-bas ed mecha ni sm  f or  ma nagin g  the yua nonJa n.4 and return ed
to  set ti ng the  exchan g er a te b as ed  onwha tsuits  aut h ori ties th e best, t heW allSt re et Jour nal reported,  c iting unid en tif ied pe o p le close  to the central
bank. A n  uniden tif ied o ffic ial fromthe  PBOCinM arch t old ec onomi st s a n d  bank e r stha t'the prima r y  ta sk is  t o ma intainstability' when th e y a sked the cent ral 
ban k to  st o pf igh ti n g m a r kets and let th e yuan's v al u efall at ac los ed  door
m eeting,  citi n g previ ously und isclosedmi nute s ofthe gather ing.

Ma y 26 - Re u ters( El ias G len n): "P ro fit  grow th atC hin a's i ndustr ia l firm s
slo we d in Apr il, in line with otherdata f or th e m onth whic h s u gge sted theecon omy may be  lo sin g ste ama gainafte r  p ick i ng up  ear l ier in th e  y ear . Ch ina's
indus t r i alfirms  ma d e 502bill ion yuan ($76.59b illion) in pro fits l ast  mo n th,up  4.2% from the  sa me p eriod la st  year and c omparedwi t h gro wth of  11.1%  in
Mar c h .. . "

EMBubb leWatch:

M ay26 - Bloom be rg (Matth ew M ar tin, A rchana Nara y a nan and Deema Al masha b i ): "B a nks 
in
 and_construction needed_to shore up economic_growth, the_Ministry
of_Finance said._Overall_risks associated with_government debt, which_amounted
to 26.66 trillion yuan_($4.1 trillion) at_the_end of last year, are under control,
the ministry said in a statement late on_Thursday._The government_can_add_leverage
gradually because its debt ratio_is still below international warning_levels,
it said."

May_25 - Bloomberg (Lisa Pham): "In the creative_world_of Chinese lending,
there's_a new trade in town: the cow leaseback. China_Huishan Dairy Holdings
Co., which operates the_largest number of_dairy_farms_in the country, is_selling
about a quarter of its herd_-- some 50,000 animals -- to_Guangdong Yuexin Finance
Lease Co. for 1 billion_yuan ($152 million) and then renting_them back. With
an estimated $1.3_trillion of_risky loans in the country,_Chinese banks are
becoming_more cautious_about lending, forcing_some companies to look for new
ways_to borrow. Finance_leasing has been growing in popularity,_especially
for_purchases of equipment._But_cows?"

May_24 -_Bloomberg (Zhe Huang_and_Justina Lee):_"The_People's Bank of China
scrapped its market-based_mechanism_for managing the yuan on Jan. 4_and returned
to setting the_exchange_rate based on what_suits authorities the best, the
Wall_Street Journal reported, citing unidentified people_close to_the central
bank._An unidentified official from the PBOC in March told economists and_bankers
that 'the primary task is to_maintain stability' when they_asked the_central
bank_to stop fighting_markets_and let_the yuan's value fall at a closed_door
meeting, citing_previously undisclosed minutes of the gathering.

May_26 - Reuters (Elias_Glenn):_"Profit growth at China's industrial firms
slowed_in April, in line with other_data for the month which_suggested_the
economy_may be losing steam again_after picking up earlier in the_year. China's
industrial firms_made 502 billion yuan ($76.59 billion) in_profits_last month,
up 4.2% from the same_period_last year and compared with growth_of_11.1%_in
March..."

EM Bubble Watch:

May 26 -_Bloomberg (Matthew Martin, Archana Narayanan and_Deema Almashabi): "Banks
in