China Struggles to Revive Growth Despite Aggressive Policy Easing

• Funding costs sliding across Chinese markets as Beijing attempts to revive growth • Yields on government bonds dropped to lowest since 2002, sign of weak confidence • Loans growth hit record low in January even after rate cuts, policy transmission weakening • Corporate bond financing become much cheaper recently, yield premiums compressing • Onshore interest rate swaps fell toward 4-year low, increased bets on further easing