The non-uniform nature of Chinese credit market imperfections and dynamics of the real exchange rate amplify the Chinese business cycle in a sectorally asymmetric fashion, an International Monetary Fund paper, published in May, says.

Yuanyan Zhang, the paper's author, analyses the role of credit market imperfection and sectoral asymmetry as a means through which shocks to the real economy are propagated and amplified. Yuanyan says that in spite of the recent development of China's financial