China's economy is at the mercy of a force completely beyond its control
A series of unfortunate events
But it also created an imbalance between the increasing amount of yuan in circulation and the steadiness of the currency's value that "will only continue to grow if the CNY does not weaken materially and China's financial sector continues to expand at double-digit rates," Chu wrote (emphasis ours).
The flow of yuan around the country would tighten, cooling the property market. This is important. Property-market growth is part of what turned 2016's rocky start into a net positive year for China.